Daily Stock Analysis: Grindrod Shipping

Grindrod Shipping Holdings Ltd, with the ticker (GRIN), is a small-cap marine shipping company operating in the industrials business sector. This is the fourth of five industrials candidates competing for the forty-fourth slot in the Viital folio. It is my first ever report on Grindrod Shipping Holdings for my Viital portfolio or any of my previous six portfolios.

Grindrod Shipping Holdings Ltd was founded in 1910 and is based in Singapore. It owns charters in, and operates, a fleet of drybulk carriers and one tanker. The drybulk carrier's business is further divided into handysize and supramax. It generates its revenue from charter hire of ships and freight revenue.

Its customers include shipping companies, trading houses, mining companies, industrial manufacturing companies, and oil companies, as well as traders of grains, steel, and forestry products.

Three key data points gauge any dividend equity or fund such as Grindrod Shipping Holdings Ltd:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

GRIN Price

Grindrod’s price per share was $18.87 as of yesterday's market close.  One year ago it’s price was $11.62. Thus, GRIN share price rose $7.25 or about 62% in the past year.

If Grindrod’s stock trades in the range of $8.00 to $24.00 this next year, its recent $18.87 share price might rise by $4.13 to reach $23.00 by next year. My $4.13 upside estimate is $0.26 under the average one-year price increase for the past three years.

GRIN Dividends

Grindrod Shipping Holdings Ltds most recently declared Quarterly dividend of $0.47 was paid June 20th, to shareholders on record as of June 9th.

Since December 13, 2021, Grindrod Shipping Holdings Ltd has paid variable Quarterly dividends.  The current forward looking annual dividend of $1.88 equates to an annual yield of 9.96% as of yesterdays $18.87 share price.

GRIN Returns

Adding the $1.88 estimated Gindrod annual dividend to my estimated one-year price upside estimate of $4.13 shows a $6.01 potential gross gain, per share, to be reduced by any costs to trade GRIN shares.

At yesterday's $18.87 closing price, a little over $1000 would buy 53 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.19 per share.

Subtract that maybe $0.19 brokerage cost from my estimated $6.01 gross gain estimate per share results in a net gain of $5.82 X 53 shares = $308.46, for a 30.8% net gain including a 9.96% forward looking annual dividend yield.

Over the next year our $1K investment in GRIN shares should generate $99.60 in cash dividends. Of course, a single share of GRIN stock bought at yesterday's $18.87 price over 5 times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a good time to pick up Grindrod Shipping Holdings Ltd shares based on their forward looking dividends for the year 2022. The forecast annual dividend from $1K invested is 5.28 times more than yesterday’s single share price. Consider yourself alerted. It's a sign. Now’s the time.

All of the estimates above are speculation based on the past history of Grindrod Shipping Holdings Ltd. Only time and money invested in this stock will determine its market value.

More By This Author:

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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