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Healthcare Services Group Inc goes by the ticker symbol HCSG and is in the industrials business sector as a management services company. This is my second report on Health Care Services Group for this Vista folio. I last mentioned them on April 14th. 

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

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

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 dividend equities or funds like Healthcare Services Group Inc:

(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

HCSG's price per share closed at $31.68 yesterday. One year ago its price was $24.45. Thus, price per share grew over 29.5% over the past year as Healthcare Services Group recovered from Covid economic doldrums. 

Should HCSG's stock trade in the range of $20 to  $35.00 this next year, its recent $31.68 price might rise by $1.57 to reach $33.25 by June 16, 2022. My estimate corresponds to the average annual price increase for Healthcare Services Group Inc over the last ten years. Momentum counts.

HCSG Dividends

Healthcare Services Group's most recent quarterly dividend payout of $0.2075 is payable June 25th and equates to $0.83 annually which will yield 2.62% based on yesterday's $31.68 closing price. HCSG has paid quarterly dividends increasing annually since 2002 (19 years.)

HCSG Returns

Adding the $0.83 annual Healthcare Services Group Inc forward-looking dividend to my $1.57 price upside estimate shows a $2.40 potential gross gain, per share, to be reduced by any costs to trade HCSG. At yesterday's $31.68 price per share, a little over $1000 would buy 32 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.31 per share.

Subtract that maybe $0.31 brokerage cost from my estimated $2.40 gross gain per share results in a net gain of $2.09 X 32 shares = $66.88 for a 6.65% net gain on a $1,013.76 investment.

So it is that Healthcare Services Group Inc shows a possible 6.65% net gain including a 2.62% forward estimated dividend yield. 

Over the next year at this time, our $1000 investment in HCSG would generate $26.20 in cash dividends. And a single share bought at yesterday's closing price was $31.68! So, if HCSG is your kind of management services company, the Healthcare Services Group Inc share price is $5.48 higher than the expected annual dividend income from $1,000 invested. This suggests a pullback in price to about $27 would signal the time to add Healthcare Services Group Inc to your stock holdings. Be sure to set your buy order below the dividend income from $1K invested.

All of the estimates above are speculation based on the past history of Healthcare Services Group Inc. Only time and money invested in this stock will determine its true worth.