Daily Stock Analysis: Sainsbury (JSAIY)

Sainsbury (J) PLC is known by the ticker symbol JSAIY and is listed in the consumer defensive sector as a grocery stores company. This is my first ever report on Sainsbury (J) PLC  for any of my six portfolios.

Founded in 1869, Sainsbury's is the second-largest U.K. grocery chain with a 16.5% market share. It operates over 600 supermarkets and 800 convenience stores, all in the U.K., with 90% of sales generated by supermarkets. 

The company has diversified away from core food by selling clothing, telecom equipment, and other non-food items. In September 2016, it took a step further into nonfood retailing with the purchase of Home Retail Group, operating the Habitat and Argos chains (general merchandise and electronics stores), for GBP 1.1 billion. 

It has been selling products online since 1997.

In addition, the company offers financial services, such as credit cards, and travel money, and personal loans, as well as home, car, pet, travel, and life insurance products. 

J Sainsbury plc is headquartered in London, the United Kingdom.

Three key data points gauge dividend equities or funds like Sainsbury (J) PLC (JSAIY):

(1) Price

(2) Dividends

(3) Returns

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

JSAIY Price

Sainsbury's price per share was $17.09 as of Monday's market close. One year ago its price was $9.80. So JSAIY's share price has popped up over 74% in the past year. 

If Sainsbury's stock trades in the range of $8.00 to $20.00 this next year, its recent $17.09 price might rise by $0.91 to reach $18.00 by August 31, 2022. My estimate is about equal to JSAIY's average annual price upside for the past 5 years.

JSAIY Dividends

Sainsbury's most recent regular semi-annual dividend payout of  $0.41 was made July 26th. The estimated annual payout of $0.58 yields 3.39% based on Monday's $17.09 closing price. Sainsbury's has paid semi-annual variable dividends, for 16 years.

JSAIY Returns

Adding the $0.58 annual SJAIY forward-looking dividend to my $0.91 price upside estimate shows a $1.49 potential gross gain, per share, to be reduced by any costs to trade Sainsbury's shares.  

At Monday's $17.09 price per share, a little over $1000 would buy 59 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.17 per share.

Subtract that maybe $0.17 brokerage cost from my estimated $1.49 gross gain per share results in a net gain of $1.32 X 59 shares = $77.88 for a 7.75% net gain on a $1,008.31 investment.

So it is that Sainsbury (J) PLC (JSAIY)  shows a possible 7.75% net gain including a 3.39% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Sainsbury (J) PLC (JSAIY) could generate $33.90 in cash dividends alone. And a single share bought at Monday's closing price was $17.09! Thus, JSAIY's share price is about 50% of the dividend income from $1K invested. So, according to my dogcatcher ideal, now is the time to pickup JSAIY shares. The dividend from $1k invested is nearly two times the single share price.  Consider yourself alerted.   

All of the estimates above are speculation based on the past history of Sainsbury (J) PLC (JSAIY). 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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