Daily Stock Analysis: South Jersey Industries
The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista. I will select its ninth 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 utilities sector stock candidates vying to be that tenth selection and only utility member of the Vista portfolio.
My subject today is a mid-cap natural resources company, named South jersey Industies Inc. Its trading ticker symbol is SJI. This is my first report on South Jersey Industries Inc for any of my portfolios.
South Jersey Industries Inc is a New Jersey holding company that acquires and develops utility companies.
Through its many subsidiaries, SJI is primarily involved in transmitting, distributing, and selling natural gas and electricity in the mid-Atlantic U.S.
The company segments its operations into gas utility operations and energy group businesses. The majority of SJI's total revenue comes from its gas utility operations, which encompasses the company's principal subsidiary: South Jersey Gas. SJG purchases, transmits, and sells natural gas primarily for residential consumers in southern New Jersey.
The energy group also represents a significant income stream through its wholesale energy and retail electric services.
The company develops, owns, and operates energy-related projects, including natural gas-fueled combined heating, cooling and power, and landfill gas-to-energy production facilities, as well as solar-generation sites.
Additionally, it owns oil, gas, and mineral rights in the Marcellus Shale region of Pennsylvania; acquires and markets natural gas and electricity to retail end users, as well as provides total energy management, fuel management, and procurement and cost reduction services.
South Jersey Industries, Inc. was founded in 1910 and is headquartered in Folsom, New Jersey.
I use three key data points to gauge dividend equities or funds like South Jersey Industries Inc:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
SJI Price
SJI's price per share closed at $22.78 yesterday. A year ago its price was $30.55. Price fell $10.77 or about 35.25% last year.
If SJI's stock trades in the range of $18 to $28 this next year, its recent $22.78 price might rise by $3.22 to reach $26.00 by November 13, 2021.
SJI Dividends
SJI's most recently declared quarterly dividend was $0.295 paid on October 2nd. Dividends are estimated to total $1.18 per share annually and yield 5.18% at yesterday's $22.78 closing price.
SJI Gains?
Adding the $1.18 annual anticipated dividend to my $3.22 optimistic estimate of South Jersey Industries Inc's price upside shows a $4.40 potential gross gain, per share, to be reduced by any costs to trade the shares.
Put little over $1,000.00 today in South Jersey Industries Inc at $22.78 and we would buy 44 shares of SJI stock.
A $10 broker fee (if any) paid half at purchase and half at sale could cost us about $0.23 per share.
Subtract that $0.23 brokerage cost from my estimated $4.40 gross gain per share results in a net gain of $4.17 X 44 shares = $183.48 for an 18.3% net gain on a $1,002.32 investment.
So it goes that South Jersey Industries Inc shows a possible 18.3% net gain including a 5.18% dividend yield. It could be more, it could be less.
All of the estimates above are speculation based on the past history of South Jersey Industries Inc. 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 ...
more