Daily Stock Analysis: National Fuel Gas (NFG)
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 ninth 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 first of five utility sector stock candidates vying to be that tenth selection and only utility member of the Vista portfolio.
My subject today is a mid-cap integrated utility, named National Fuel Gas Co. Its trading ticker symbol is NFG. This is my first report on National Fuel Gas Co for any of my portfolios.
National Fuel Gas Co is a diversified energy company engaged in the production, gathering, transportation, distribution, and marketing of natural gas.
The operating segments of the company are the Exploration and Production segment, the Pipeline and Storage segment, the Gathering segment, and the Utility segment.
It derives key revenue from the Exploration and Production segment which involves the exploration for, and the development and production of, natural gas and oil reserves in California and in the Appalachian region of the US.
The Utility segment sells natural gas to retail customers and provides natural gas transportation services in western New York and northwestern Pennsylvania
As of September 30, 2019, the company also owned approximately 95,000 acres of timber property; and managed approximately 2,500 additional acres of timber cutting rights.
National Fuel Gas Company was founded in 1902 and is headquartered in Williamsville, New York.
I use three key data points to gauge dividend equities or funds like National Fuel Gas Co. (NFG):
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
NFG Price
National's price per share closed at $38.17 Friday. A year ago its price was $46.66. Price fell $8.49 or about 17.45% last year.
If National's stock trades in the range of $35 to $50 this next year, its recent $38.17 price might rise by $6.83 to reach $45.00 by November 9, 2021.
NFG Dividends
National Fuel's most recently declared quarterly dividend was $0.445 paid on October 15th. Dividends are estimated to total $1.78 per share annually and yield 4.66% at Friday's $38.17 closing price.
NFG Gains?
Adding the $1.78 annual anticipated dividend to my $6.83 optimistic estimate of National Fuel Gas's price upside shows an $8.61 potential gross gain, per share, to be reduced by any costs to trade the shares.
Put little under $1,000.00 today in National Fuel Gas Co at $38.17 and we would buy 26 shares of NFG stock.
A $10 broker fee (if any) paid half at purchase and half at sale could cost us about $0.38 per share.
Subtract that $0.38 brokerage cost from my estimated $8.61 gross gain per share results in a net gain of $8.23 X 26 shares = $213.21 for a 21.33% net gain on a $992.42 investment.
So it goes that National Fuel Gas Co. (NFG) shows a possible 21.33% net gain including a 4.66% dividend yield. It could be more, it could be less.
All of the estimates above are speculation based on the past history of National Fuel Gas Co. (NFG). 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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