Daily Stock Analysis: RELX

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RELX PLC is known by the trading ticker symbol, RELX. It is listed in the Industrials sector as an analytics business service. This is my first ever report on RELX PLC for my Vista stock Portfolio or any of my other five.

RELX, formerly known as Reed Elsevier, is an FTSE 100 diversified information and analytics company. 

The firm operates across four main areas: (1) scientific, technical, and medical (38% of 2020 sales); (2) risk and business analytics (34%); (3) legal (23%); and (4) exhibitions (5%). RELX Group has three listings: its primary one in London and two more in New York and Amsterdam.

The company changed its name to RELX PLC in July 2015 but was incorporated in 1903 and is headquartered in London, the United Kingdom.

Three key data points gauge dividend equities or funds like RELX PLC:

(1) Price

(2) Dividends

(3) Returns

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

RELX Price

RELX's price per share was $29.92 as of yesterday's market close. One year ago its price was $22.75. So RELX's share price has increased just over 31.5% in the past year. 

If RELX PLC stock trades in the range of $20.00 to $35.00 this next year, its recent $29.92 price might rise by $3.08 to reach $33.00 by August 20, 2022. My estimate is more or less in line with the average of the past ten years of annual price trajectory.

RELX Dividends

RELX's most recent regular quarterly dividend payout of  $0.1995 is payable on September 13. The resulting annual payout of $0.80 yields 2.67% based on yesterday's $29.92 closing price. RELX has paid variable quarterly dividends for 31 years.

RELX Returns

Adding the $0.80 annual RELX forward-looking dividend to my $3.08 price upside estimate shows a $3.88 potential gross gain, per share, to be reduced by any costs to trade RELX shares.  

At yesterday's $29.92 price per share, a little under $1000 would buy 33 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.30 per share.

Subtract that maybe $0.30 brokerage cost from my estimated $3.88 gross gain per share results in a net gain of $3.58 X 33 shares = $118.14 for an 11.8% net gain on a $987.38 investment.

So it is that RELX PLC shows a possible 11.8% net gain including a 2.67% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in RELX PLC could generate $26.70 in cash dividends alone. And a single share bought at yesterday's closing price was $29.92! Thus, RELX's share price is now $3.22 over the dividend income from $1K invested. So, according to my not the time to pick up RELX  shares. The dividend from $1k invested trails the single share price by $3.22. Wait for the price to drop to $25.00. Consider yourself alerted. 

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

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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