E Daily Stock Analysis: Hooker Furniture - Friday, February 19

HOFT Dividends

Hooker's most recently declared quarterly dividend was $0.18 paid out on December 31st. Dividends are estimated to total $0.72 per share annually and yield 2.25% at yesterday's $32.04 closing price. 

Over the next year at this time, a $1000 investment would generate $22.50 in cash per share. And a single share bought at yesterday's closing price was over $32.00! So, if HOFT is your kind of company, wait for the price to drop closer to $20 to where the dividend income from $1,000 invested meets or exceeds the single share price. You then have a block of stocks to hold forever, no matter where the price rises or falls. 

HOFT Returns

Adding the $0.72 annual HOFT anticipated dividend to my $2.96 price upside shows a $3.68 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little under $1,000.00 today in Hooker Furniture Corp at $32.04 per share and we'd buy 31 shares of HOFT stock.

A $10 broker fee (if charged) to be paid half at purchase and half at sale might cost us about $0.32 per share.

Subtract that maybe $0.32 brokerage cost from my estimated  $3.68 gross gain per share results in a net gain of $3.36 X 31 shares = $104.16 for a 10.5% net gain on a $993.24 investment.

Hooker Furniture Corp shows a possible 10.5% net gain including a 2.25% dividend yield. It could be more, it could be less. And wait to buy until the annual yield from $1000 invested is equal to or greater than the single share price (around $20.00 in this case).

All of the estimates above are speculation based on the past history of Hooker Furniture Corp. Only time and money invested in this stock will determine its worth.

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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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