Daily Stock Analysis: Omnicom Group (OMC)

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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 eleventh 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 third of five communication services sector stock candidates vying to be that eleventh selection and first of six communication services members of the Vista portfolio.

My subject today is a large-cap advertising agency, named Omnicom Group Inc. Its trading ticker symbol is OMC. This is my first report on Omnicom Group Inc for any of my portfolios.

Omnicom is the world's second-largest ad holding company, based on annual revenue. 

The American firm's services, which include traditional and digital advertising and public relations, are provided worldwide, with over 85% of its revenue coming from more developed regions such as North America and Europe. 

The company operates in the United States, Canada, Puerto Rico, South America, Mexico, Europe, the Middle East, Africa, Australia, Greater China, India, Japan, Korea, New Zealand, Singapore, and other Asian countries. 

The company is based in New York, New York.

I use three key data points to gauge dividend equities or funds like Omnicom Group Inc:

(1) Price

(2) Dividends

(3) Returns

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

OMC Price

Omnicom's price per share closed at $61.86 yesterday. A year ago its price was $78.24. Price fell $16.38 or about 26.5% last year.

If OMC's stock trades in the range of $45 to $65 this next year, its recent $81.86 price might rise by $1.74 to reach $63.60 by November 18, 2021. 

OMC Dividends

Omnicom's most recently declared quarterly dividend was $0.65 paid October 12th. Dividends are estimated to total $2.60 per share annually and yield 4.2% at yesterday's $61.86 closing price.

OMC Gains?

Adding the $2.60 annual anticipated dividend to my $1.74 optimistic estimate of Omnicom Group Inc's price upside shows a $4.34 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little under $1,000.00 today in Omnicom Group Inc at $61.86 and we would buy 16 shares of OMC stock.

A $10 broker fee (if any) paid half at purchase and half at sale could cost us about $0.63 per share.

Subtract that $0.63 brokerage cost from my estimated $4.34 gross gain per share results in a net gain of $3.71 X 16 shares = $59.36 for a 5.95% net gain on a $989.76 investment.

So it goes that Omnicom Group Inc shows a possible 5.95% net gain including a 4.2% dividend yield. It could be more, it could be less.      

All of the estimates above are speculation based on the past history of Omnicom Group Inc. 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 solicitation, ...

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