Daily Stock Analysis: Mueller Water Products
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 eighth stock this coming 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 we'll review the fourth of five industrial sector stock candidates vying to be that eighth selection and second industrial member of the Vista portfolio.
My subject today is a small cap specialty industrial machinery company, Mueller Water Products Inc. Its trading ticker symbol is MWA. This is my first report on Mueller Water Products Inc for this Vista and any of my dog of the week portfolios.
- Mueller Water Products Inc is a U.S.-based company that manufactures and sells products and services used in the transmission, distribution, and measurement of water.
- The company operates in two business segments, Infrastructure, and Technologies.
- Infrastructure manufactures valves for water and gas systems, including iron gate, butterfly, tapping, and others.
- Technologies offer water metering products and systems and water leak detection and pipe condition assessment products and services.
It sells its products primarily through waterworks distributors to various end-user customers comprising municipalities, water and wastewater utilities, gas utilities, and fire protection and construction contractors as well as to end-users.
The company is headquartered in Atlanta, Georgia.
I use three key data points to gauge dividend equities or funds like Mueller Water Products Inc. (MWA):
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
MWA Price
Mueller's price per share closed at $10.42 yesterday. A year ago its price was $11.68. Price fell $1.24 or over 10.6% last year.
If Mueller's stock trades in the range of $7 to $13 this next year, its recent $10.42 price might rise by $1.58 to reach $12.00 by October 28, 2021.
MWA Dividends
Mueller's most recently declared quarterly dividend was $0.055 payable November 20th. Dividends are estimated to total $0.22 per share annually and yield 2.11% at yesterday's $10.42 closing price.
MWA Gains?
Adding the $0.22 annual anticipated dividend to my $1.58 optimistic estimate of Mueller's price upside shows a $1.80 potential gross gain, per share, to be reduced by any costs to trade the shares.
Put little under $1,000.00 today in Mueller Water Products Inc. at $10.42 and we would buy 6 shares of MWA stock.
A $10 broker fee paid half at purchase and half at the sale would cost us about $0.10 per share.
Subtract that $0.10 brokerage cost from my estimated $1.80 gross gain per share results in a net gain of $1.70 X 96 shares = $163.20 for a 16.32% net gain on a $1,000.32 investment.
So it goes that Mueller Water Products Inc. (MWA) shows a possible 16.32% net gain including a 2.11% dividend yield. It could be more, it could be less.
All of the estimates above are speculation based on the past history of Mueller Water Products Inc. (MWA). 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 ...
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