Daily Stock Analysis: Resources Connection (RGP)

The new portfolio of stocks I started building September 8, at a one stock per week pace for the next year, is named Vista. I will select its third 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 fifth of five industrials sector stock candidates vying to be that third selection in the Vista portfolio.

My subject today is a small cap consulting services firm named, Resources Connection Inc. Its trading ticker symbol is RGP. This is my first report on Resources Connection Inc (RGP) for this Vista dog of the week portfolio.I did review it for Volio, also.

Resources Connection Inc provides consulting and business initiative support services primarily through its operative subsidiary, Resources Global Professionals.

The company offers transformation and improvement, financial reporting and analysis, strategy development, and program and project management services and support.

Its clients operate in the accounting, finance, corporate governance, risk and compliance management, corporate advisory, strategic communications and restructuring, information management, human capital, supply chain management, and legal and regulatory sectors.

The company was formerly known as RC Transaction Corp. and changed its name to Resources Connection, Inc. in August 2000. 

Resources Connection, Inc. was founded in 1996 and is headquartered in Irvine, California.

I use three key data points to gauge dividend equities or funds like Resources Connection Inc (RGP):

(1) Price

(2) Dividends

(3) Returns

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

RGP Price

Resources' price per share closed at $11.40 yesterday. A year ago its price was $17.56. Price fell to $6.16 or just about 35% last year.

If Resources's stock trades in the range of $9 to $15 this next year, its recent $11.40 price might rise by $1.60 to reach $13.00 by September 25, 2021.

RGP Dividends

Resources most recently declared quarterly dividend was $0.14 paid September 24th and will total $0.56 annually and yield 4.91% at yesterday's $11.40 closing price.

RGP Gains?

Adding the $0.56 annual anticipated dividend to my $1.60 optimistic estimate of MATW's price upside shows a $2.16 potential gross gain, per share, to be reduced by any costs to trade the shares.

If we put little over $1,000.00 today in Matthews International Corp at $11.40, we would buy 88 shares of MATW stock.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.11 per share.

Subtract that $011 brokerage cost from my estimated $2.16 gross gain per share results in a net gain of $2.05 X 88 shares = $180.40 for an 18% net gain on a $1,003.20 investment.

So it goes that Resources Connection Inc (RGP) shows a possible 18% net gain including a 4.91% dividend yield. It could be more, it could be less.

All of the estimates above are speculation based on the past history of Resources Connection Inc (RGP). 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 ...

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