Oil-Dri Corp of America, known by the ticker symbol ODC, is a small cap household and personal products company in the consumer defensive business sector. This is my first report on ODC for my Viital stock portfolio I last reported on ODC on September 2, this year for my Vista portfolio.

Oil-Dri Corp of America develops, manufactures, and markets sorbent products made primarily from clay. Its absorbent offerings, which draw liquid up, include cat litter, floor products, toxin control substances for livestock, and agricultural chemical carriers. 

The company has two segments based on the different characteristics of two primary customer groups namely (1) Retail and Wholesale Products Group and (2) Business to Business Products Group. 

Image Source: Pexels

The company's products are sold under various brands such as Cat's Pride, Jonny Cat, Amlan, Agsorb, Verge, Pure-Flo, and Ultra-Clear.

Its customers include mass merchandisers, wholesale clubs, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies, and sports field product and sports turf material users; processors and refiners of edible oils, petroleum-based oils, and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products. 

Oil-Dri Corporation of America was founded in 1941 and is based in Chicago, Illinois.

Three key data points gauge any dividend equity or fund such as Oil-Dri Corp of America  (ODC):

(1) Price

(2) Dividends

(3) Returns

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

ODC Price

Oil-Dri's price per share was $35.06 as of yesterday's market close. One year ago its price was $35.31. So, FLO's share price fell just 0.7% in the past year.

If Oil-Dri's stock trades in the range of $33.00 to $38.00 this next year, its recent $35.06 share price could rise by $1.44 to reach $36.50 by November 19, 2022. My estimate is $0.05 under the average of annual ODC price increases over the past ten years

IDC Dividends

Oil-Dri's most recently announced a quarterly dividend of  $0.27 paid out October 14th. The compounded annual payout of $1.08 yields 3.08% per yesterday's $35.06 closing price. Oil-Dri Corp of America has paid quarterly dividends increasing generally annually since June 1990: That will be 32 years of increasing payouts as of next June. 

ODC Returns

Adding the $1.08 annual estimated ODC forward-looking dividend to my $1.44 price upside estimate shows a $2.52 potential gross gain, per share, to be reduced by any costs to trade ODC shares.  

At yesterday's $35.06 price per share, a little over $1000 would buy 29 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.34 per share.

Subtract that maybe $0.34 brokerage cost from my estimated $2.52 gross gain per share results in a net gain of $2.18 X 29 shares = $63.22 for a 6.32% net gain on a $1,017.32 investment.

So it is that Oil-Dri Corp of America (ODC) shows a possible 6.32% net gain including a 3.08% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Oil-Dri Corp of America (ODC) could generate $30.80 in cash dividends alone. Note that a single share of ODC bought at yesterday's closing price was $35.06! Thus, Oil-Dri Corp of America (ODC) share price is $4.26 MORE than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is not a prime time to pick up ODC shares. The estimated next-year dividend from $1k invested is over $4 under the single share price. Consider yourself alerted. It's a sign!  Hold off any purchase until the ODC price drops to $33.00 or less.

All of the estimates above are speculation based on the past history of Oil-Dri Corp of America (ODC). Only time and money invested in this stock will determine its market value.