Health Care Services Group Inc., known by the ticker symbol HCSG, is a small cap housekeeping and facilities management firm in the industrial business sector. This is my first report on HCSG for my Viital stock portfolio I most recently selected this company as the forty-first selection for my Vista portfolio (number 6) on June 18, 2021.

Healthcare Services Group Inc is a provider of housekeeping and facility management services to the healthcare industry. 

Image Source: Pixabay

The company operates two business segments, both contributing roughly equally to the company's revenue: First, housekeeping, laundry, linen, and other services;  Second dietary department services. 

Housekeeping includes management of clients' housekeeping departments, cleaning, disinfecting and sanitizing, laundry, and bed linen, and uniform services. Dietary consists of food purchasing, meal preparation, and providing dietitian consulting services. 

Its clients are primarily nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States of America.

As of December 31, 2020, the company provided its services to approximately 3,000 facilities. 

Healthcare Services Group, Inc. was incorporated in 1976 and is based in Bensalem, Pennsylvania.

Three key data points gauge any dividend equity or fund such as Health Care Services Group Inc. (HCSG):

(1) Price

(2) Dividends

(3) Returns

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

HCSG Price

Health Care Services's price per share was $19.24 as of yesterday's market close. One year ago its price was $23.06. So, HCSG's share price dropped about 16.5% in the past year.

If HCSG's stock trades in the range of $15 to $25.00 this next year, its recent $19.24 price could rise by $3.76 to reach $20.00 by November 3, 2022. My estimate is $1.00 less than the median of target price estimates from 8 analysts tracking HCSG for brokerage houses.  

HCSG Dividends

Health Care Services's most recently announced quarterly dividend of  $0.21 will pay out on December 23rd, to shareholders. The compounded annual payout of $0.84 yields 4.37% based on yesterday's $19.24 closing price. HCSG has paid quarterly dividends increasing generally annually since July 2005: That is 16 years of increasing payouts. 

HCSG Returns

Adding the $0.84 annual estimated HCSG forward-looking dividend to my $3.56 price upside estimate shows a $3.40 potential gross gain, per share, to be reduced by any costs to trade HCSG shares.  

At yesterday's $19.24 price per share, a little over $1000 would buy 52 shares.

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

Subtract that maybe $0.19 brokerage cost from my estimated $3.40 gross gain per share results in a net gain of $3.21 X 52 shares = $166.92 for a 16.67% net gain on a $1,000.48 investment.

So it is that Health Care Services Group Inc. (HCSG) shows a possible 16.67% net gain including a 4.37% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Health Care Services Group Inc. (HCSG) could generate $43.70 in cash dividends alone. Note that a single share bought at yesterday's closing price was $19.24! Thus, Health Care Services' share price is about less than half the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now IS  the time to pickup HCSG shares. The estimated next year's dividend from $1k invested is nearly 127% greater than the single share price. Consider yourself alerted. It's a sign!

All of the estimates above are speculation based on the past history of Health Care Services Group Inc. (HCSG). Only time and money invested in this stock will determine its market value.