Daily Stock Analysis: PCCW
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PCCW Ltd is known by the trading ticker symbol PCCWY and is a member of the communication services business sector as a mid-cap telecom services enterprise. This is my first ever report on PCCW Ltd for this Vista or any of my five other dog of the week portfolios. I
PCCW Ltd is a Hong Kong-based company engaged in the businesses of telecommunications, media, information technology solutions, property development and investment, and others.
Its operating segments are HKT Limited (HKT), Media Business, Solutions Business, Pacific Century Premium Developments, and Other businesses.
The entity derives key revenue from the HKT segment, which includes the provision of telecommunications and related services such as local telephony, local data and broadband, international telecommunications, mobile, and other telecommunications businesses such as customer premises equipment sales, outsourcing, consulting, and contact centers.
The company operates in Hong Kong and other countries, of which maximum revenue is derived from the operations in Hong Kong.
PCCW Limited was founded in 1925 and is headquartered in Quarry Bay, Hong Kong.
Three key data points gauge dividend equities or funds like PCCW Ltd:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
PCCWY Price
PCCW Ltd's price per share was $5.18 as of yesterday's market close. One year ago its price was $5.64. So PCCWY's price has dropped about 8.2% in the past year.
If PCCW's stock trades in the range of $4.50 to $6 this next year, its recent $5.18 price might rise by $0.12 to reach $5.30 by July 16, 2022. My estimate is based on the average annual price upside over the past nine years.
PCCWY Dividends
PCCW's most recent regular semi-annual dividend payout of $0.2962 was paid May 28, 2021, and added to the previous semi-annual payments, projects an $0.41 annual payout yielding 8.01% based on yesterday's $5.18 closing price.PCCWY has paid semi-annual variable dividends generally increasing annually for 12 years.
PCCWY Returns
Adding the $0.41 annual PCCWY forward-looking dividend to my $0.12 price upside estimate shows a $0.52 potential gross gain, per share, to be reduced by any costs to trade PCCW Ltd shares.
At yesterday's $5.18 price per share, a little under $1000 would buy 193 shares.
A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.05 per share.
Subtract that maybe $0.05 brokerage cost from my estimated $0.52 gross gain per share results in a net gain of 0.47 X 193 shares = $90.71 for a 9.07% net gain on a $997.81 investment.
So it is that PCCW Ltd shows a possible 9.07% net gain including an 8.01% forward estimated dividend yield.
Over the next year at this time, a $1000 investment in PCCW Ltd could generate $80.10 in cash dividends alone. And a single share bought at yesterday's closing price was $5.17! Thus, PCCWY's share price is about 6.5% of dividend income from $1K invested. So, according to the dividend dogcatcher ideal, this is the prime time to pick up PCCW Ltd shares because the dividend from $1k invested exceeds the single share price by about 15.5 times. Consider yourself alerted.
All of the estimates above are speculation based on the past history of PCCW Ltd. Only time and money invested in this stock will determine its true 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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