Schweitzer-Mauduit International Inc, known by the ticker symbol SWM, is a small cap Paper and Paper Products Company  in the materials business sector. This is my first report on SWM for my Viital stock portfolio. I have not reviewed Schweitzer-Mauduit since September 11, 2020  when I reviewed it for my first pick for my Vista Potfolio (my  6th of seven folios so-far).

Schweitzer-Mauduit International Inc is a diversified producer of premium specialty papers and resin-based products. 

Photo by Dan-Cristian Pădureț on Unsplash

It manufactures and sells paper and reconstituted tobacco products to the tobacco industry as well as specialized paper products.

The company operates in two segments.  First, Advanced Materials and Structures, which manufactures resin-based products used in specialty applications in the filtration, infrastructure and construction, transportation, industrial, and medical end-markets. 

The companies second operating segment is Engineered Papers, which produces cigarette papers and reconstituted tobacco products for cigarette and cigar manufacturers, as well as commodity paper grades for printing and writing, flooring laminates, and food service packaging. 

The company was incorporated in 1995 and is headquartered in Alpharetta, Georgia.

Three key data points gauge any dividend equity or fund such as Schweitzer-Mauduit International Inc (SWM):

(1) Price

(2) Dividends

(3) Returns

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

SWM Price

Schweitzer's price per share was $28.84 as of yesterday's market close. One year ago its price was $41.24. Thus, International's share price fell 30% in the past year.

If Schweitzer's stock trades in the range of $25.00 to $35.00 this next year, its recent 28.84 share price might rise by $0.96 to reach $29.80 by December 15, 2022. My estimate is $0.06 over the average annual SWM  price increase since 2001.

SWM Dividends

Schweitzer's most recent quarterly dividend of  $0.44  pays out Friday, December 17th, to shareholders of record November 24th. That dividend equates to $1.76 annually and yields 5.10% per yesterday's $28.84 closing price. 

Schweitzer-Mauduit International Inc (SWM) had paid  quarterly dividends increasing generally annually since June 10, 1996. That will be 26 years come June.

SWM Returns

Adding the $1.76 annual estimated Schweitzer-Mauduit International Inc forward-looking dividend to my $0.96 price upside estimate shows a $2.72 potential gross gain, per share, to be reduced by any costs to trade SWM shares.  

At yesterday's $28.84 price per share, a little over $1000 would buy 35 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.29 per share.

Subtract that maybe $0.29 brokerage cost from my estimated $2.72 gross gain per share results in a net gain of $2.43 X 35 shares = $85.05 for a 8.5% net gain on a $1,009.40  investment.

So it is that Schweitzer-Mauduit International Inc (SWM)  shows a possible 8.25% net gain including a 6.1% forward estimated dividend yield. 

Over the next year at this time a $1000 investment in Schweitzer-Mauduit International Inc could generate $61.00 in cash dividends alone. Note that a single share of SWM stock bought at yesterday's closing price was $28.84. Therefore, Schweitzer-Mauduit International Inc share price is less than half the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is a prime time to pickup Schweitzer-Mauduit International Inc (SWM)  shares. The estimated next-year dividend from $1K invested is $32.16 more than SWM's single share price. Consider yourself alerted. Its a sign!  

All of the estimates above are speculation based on the past history of Schweitzer-Mauduit International Inc (SWM). Only time and money invested in this stock will determine its market value.