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Nordstrom Inc, with the ticker JWN, is a mid-cap department store company operating in the consumer cyclical business sector. This is the first of three remaining consumer cyclical candidates. It is my first report on Nordstrom Inc for my Viital portfolio the stock has not yet been selected for any of my previous six folios.

Nordstrom is a fashion retailer that operates approximately 100 department stores in the U.S. and Canada and approximately 250 off-price Nordstrom Rack stores.

The company also operates both full- and off-price e-commerce sites. Nordstrom’s largest merchandise categories are women’s apparel (28% of 2021 sales), shoes (25% of 2021 sales), men’s apparel (14% of 2021 sales), and women’s accessories (14% of 2021 sales).

Nordstrom, which traces its history to a shoe store opened in Seattle in 1901, continues to be partially owned and managed by members of the Nordstrom family.

Three key data points gauge any dividend equity or fund such as Nordstrom Inc.

(1) Price

(2) Dividends

(3) Returns

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

JWN Price

Nordstrom’s price per share was $20.50 as of yesterday's market close. One year ago its price was $34.85. Thus, JWN’s share price fell $14.35 or about 41% in the past year.

If JWN’s stock trades in the range of $16.00 to $32.00 this next year, its recent $20.50 share price might rise by $3.50 to reach $24.00 by July 13, 2023. My $3.50 upside estimate is $0.28 under the median of one-year price estimates from sixteen analysts covering JWN.
 

JWN Dividends

Nordstrom’s most recently declared a quarterly dividend of $0.19 was paid June 15, to shareholders on record  May 27th.

Since March 14, 1986, JWN paid quarterly dividends generally increasing annually until March 25, 2020, when it suspended quarterly dividend payments. The reinstated forward-looking annual dividend since April 1, 2022 of 0.76 equates to an annual yield of 3.71% as of yesterday's share price of $20.50.
 

JWN Returns

Adding the $0.76 Nordstrom Inc annual forward-looking dividend to my estimated one-year price upside estimate of $3.50 shows a $4.26 potential gross gain, per share, to be reduced by any costs to trade JWN shares.

At yesterday's $20.50 closing price, a little over $1000 would buy 49 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.20 per share.

Subtract that maybe $0.20 brokerage cost from my estimated $4.26 gross gain estimate per share results in a net gain of $4.06 X 49 shares = $198.94. for a 19.8% net gain including a 3.71% forward-looking annual dividend yield.

So it is that Nordstrom Inc shows a possible 18.8% net gain including a 3.71% forward-looking dividend yield.

Over the next year, our $1K investment in Nordstrom shares could generate $37.70 in cash dividends. Of course, a single share of JWN stock bought at yesterday's $20.50 price is just over half of the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to pick up JWN shares based on their forward-looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is 1.8 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 Nordstrom Inc. Only time and money invested in this stock will determine its market value.

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