Photo by Adam Nowakowski on Unsplash
 

Newtek Business Services Corp bears the ticker symbol NEWT, and this is my first mention of Newtek for my new Viking Portfolio or any of my previous seven Dog of The Week Portfolios.

Newtek Business Services Corp is a non-diversified closed-end management investment company.

The firm's investment objective is to generate current income and capital appreciation. The company provides business solutions that are designed to help organizations to grow sales, reduce costs, and minimize risk.

Its solutions include web design, domains, hosting, website security, and others.

Newtek Business Services Corp. was founded in 1998 and converted into a BDC company in 2014.

It is headquartered in Boca Raton, Florida with additional offices in Lake Success, New York, Garden City, New York; Miami, Florida; Milwaukee, Wisconsin; New Orleans, Louisiana; and New York, New York.

Three key data points gauge Newtek Business Services Corp

(1) Price

(2) Dividends

(3) Returns

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

NEWT Price

Newtek’s price per share was $18.89 at Wednesday’s market close. However, in the past year, Newtek’s share price dropped $11.20 or nearly 37%.

If Newtek’s stock trades in the range of $12.00 to $30.00 this next year, its recent $18.89 share price might reach $19.90 by next year. My upside increase estimate of $1.01 is based on NEWTEK’s average annual price increase over the past ten years.
 

NEWT Dividends

Newtek Business Services Corp’s most recently declared a quarterly dividend of $0.70 per share, which equals  $2.80 annually to cast a yield of 14.82%.
 

NEWT Returns

Adding the $2.80 annual Newtek dividend to my one-year price upside estimate of $1.01 reveals a $3.81 potential gross gain per share.

At Wednesday’s $18.89 closing price, a little under $1000 would buy 53 shares.

A $10 broker fee (if charged), paid half at purchase and a half at the sale, might cost us about $0.19 per share.

Subtracting that maybe $0.19 brokerage cost from my estimated $3.81 gross gain per share results in a net gain of $3.62 X 53 shares = $191.86 for a 19.2% net gain including a 14.82% annual dividend yield.

In a year our $1K investment in shares of Newtek Business Services Corp would generate $148.20 in cash dividends. Of course, a single share of Newtek stock at Tuesday's $18.89 price is nearly 8 times less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to buy Newtek Business Services Corp’s shares based on their dividends for the coming year 2023. The current dividend from $1K invested is 7,85 times more than Newtek’s single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of Newtek Business Services Corp. Only time and money invested in this stock will determine its market value.

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