Daily Stock Analysis: Interpublic Group

The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista. I will select its fifteenth stock this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today I'll review the second of five communication services sector stock candidates vying to be that fifteenth selection in Vista.

Today we look at a mid-cap advertising agency named The Interpublic Group of Companies Inc. Its trading ticker symbol is IPG. This is my second report on Interpublic for Vista.

Interpublic Group is the world's fourth-largest advertising holding company, based on annual revenue. 

It provides traditional advertising services along with digital and other services such as public relations through various acquisitions. IPG has made these services available in over 100 countries. 

The company generates more than 75% of its revenue from developed regions such as the United States and Europe.

The company was formerly known as McCann-Erickson Incorporated and changed its name to The Interpublic Group of Companies, Inc. in January 1961. 

The Interpublic Group of Companies, Inc. was founded in 1902 and is headquartered in New York, New York.

I use three key data points to gauge dividend equities or funds like The Interpublic Group of Companies, Inc:

(1) Price

(2) Dividends

(3) Returns

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

IPG Price

Interpublic's price per share closed at $23.70 yesterday. A year ago its price was $23.03. Price is up $0.67 or nearly 2.8% on the year.

If Interpublic's stock trades in the range of $12 to $30 this next year, its recent $23.70 price might rise by $1.30. to reach $25.00 by December 15, 2021. 

IPG Dividends

Interpublic's most recently declared quarterly dividend was $0.255 paid today, December 15th. Dividends are estimated to total $1.02 per share annually and yield 4.30% at yesterday's $23.70 closing price.

IPG Gains?

Adding the $1.02 annual anticipated dividend to my $1.30 optimistic estimate of Interpublic's price upside shows a $2.32 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little under $1,000.00 today in The Interpublic Group of Companies, Inc at $23.70 and we would buy 42 shares IPG stock.

A $10 broker fee (if any) paid half at purchase and half at sale could cost us about $0.24 per share.

Subtract that maybe $0.24 brokerage cost from my estimated  $2.32 gross gain per share results in a net gain of $2.08 X 42 shares = $87.36 or an 8.74% net gain on a $995.40 investment.

So it goes that The Interpublic Group of Companies, Inc shows a possible 8.74% net gain including a 4.30% dividend yield. It could be more, it could be less.  

All of the estimates above are speculation based on the past history of The Interpublic Group of Companies, Inc. Only time and money invested in this stock will determine its worth.

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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