Daily Stock Analysis: Kontoor Brands

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Kontoor Brands Inc, known by the ticker symbol KTB, is a small-cap apparel manufacturing company operating in the consumer cyclical business sector. This is my first report on Kontoor Brands Inc for my Viital portfolio, or any of my previous 6 folios.

Kontoor Brands Inc is a lifestyle apparel company. It is engaged in designing, manufacturing, sourcing, marketing, and distributing of its portfolio of brands, including Wrangler and Lee.

It manufactures its products in owned and leased facilities and distributes the products through both brick-and-mortar and e-commerce retailers. It generates the majority of its revenue from the Wrangler segment.

The company's geographical segments are the United States and International, of which most of its revenue comes from the United States.

The company sells its products primarily through mass merchants, specialty stores, mid-tier, and traditional department stores, company-operated stores, and online.

As of January 1, 2022, it operated 80 retail stores across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions.

The company was incorporated in 2018 and is headquartered in Greensboro, North Carolina.

Three key data points gauge any dividend equity or fund such as Kontoor Brands Inc (KTB).

(1) Price

(2) Dividends

(3) Returns

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

KTB Price

Kontoor ’s price per share was $33.70 as of yesterday's market close. One year ago its price was $56.41. Therefore, Kontoor Brands Inc’s share price fell $22.71 or about 40.3% in the past year.

If Kontoor’s stock trades in the range of $20.00 to $60.00 this next year, its recent $33.70 share price might rise by $10.30 to reach $44.00 by June 30, 2023. My $10.30 upside estimate is $7.83 under the median of one year price estimates from six analysts.

KTB Dividends

Kontoor’s most recently declared a quarterly dividend of $0.46 was paid on June 20, 2022, to shareholders on record as of June 9th.

KTB has paid increasing quarterly dividends since March 2020.  The current dividend delivers an annual payout of $1.84 and yields 5.46%  per yesterday’s $33.70 share price.

KTB Returns

Adding the $1.84 KTB annual dividend to my estimated one-year price upside estimate of $10.30 shows a $12.14 potential gross gain, per share, to be reduced by any costs to trade KTB shares.

At yesterday's $33.70 closing price per share, a little over $1000 would buy 30 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.33 per share.

Subtract that maybe $0.33 brokerage cost from my estimated $12.14 gross gain estimate per share results in a net gain of $11.81 X 30 shares = $354.30 for a 35.4% net gain including an 5.46% forward looking annual dividend yield.

So it is that Kontoor Brands Inc shows a possible 35.4% net gain including a 5.46% forward-looking dividend yield.

Over the next year at this time, our $1000 investment in Kontoor Brands Inc shares would generate $54.60 in cash dividends. Of course, a single share of KTB stock bought at yesterday's $33.70 price is over one and one-half times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a good time to pick up KTB shares based on their forward looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is 1.62 times greater than yesterday’s single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Kontoor Brands Inc. Only time and money invested in this stock will determine its market value.

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 ...

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