Daily Stock Analysis: The Berkeley Group

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The Berkeley Group Holdings PLC is known by the ticker symbol BKGFY and is listed in the consumer cyclical sector as a residential construction company. This is my first ever report on The Berkeley Group Holdings PLC for any of my portfolios.

The Berkeley Group Holdings PLC is a British residential construction company that operates five subsidiary construction companies around London and southern England.

The company mainly focuses on higher-end neighborhood and urban development projects ranging from single-family homes to luxury apartment buildings and flats in London. Berkeley has historically completed over 3,000 homes per year with an average selling price of around EUR 400,000. 

The company developed one of the largest residential skyscrapers in London, 1 Blackfriars, which is one of the tallest buildings in the city at 52 stories of mixed-use development.

It operates under the Berkeley, St Edward, St George, St James, St Joseph, and St William brand names. The company was founded in 1976 and is headquartered in Cobham, the United Kingdom.

Three key data points gauge dividend equities or funds like The Berkeley Group Holdings PLC:

(1) Price

(2) Dividends

(3) Returns

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

BKGFY Price

Berkeley's price per share was $67.28 as of yesterday's market close. One year ago its price was $59.24. So BKGFY's share price has increased just about 59.6% in the past year. 

If Berkeley's stock trades in the range of $48.00 to $78.00 this next year, its recent $67.28 price might rise by $6.72 to reach $74.00 by August 26, 2022. My estimate is $0.03 under Berkeley's average annual price upside for the past 5 years.

BKGFY Dividends

Berkeley's most recent regular semi-annual dividend payout of  $5.10 is payable on October 4th. This annual payout of 5.23 yields 7.58% based on yesterday's $67.28 closing price. Berkeley has paid variable semi-annual dividends for 7 years.

BKGFY Returns

Adding the $5.23 annual Berkeley forward-looking dividend to my $6.72 price upside estimate shows an $11.95 potential gross gain, per share, to be reduced by any costs to trade BKGFY shares.  

At yesterday's $67.28 price per share, a little over $1000 would buy 15 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.67 per share.

Subtract that maybe $0.67 brokerage cost from my estimated $11.95 gross gain per share results in a net gain of $11.28 X 15 shares = $169.20 for a 16.9% net gain on a $1,009.20 investment.

So is that The Berkeley Group Holdings PLC shows a possible 16.9% net gain including a 7.58% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in The Berkeley Group Holdings PLC (BKGFY) could generate $75.80 in cash dividends alone. And a single share bought at yesterday's closing price was $67.28! Thus, BKGFY's share price is 11.25% less than the dividend income from $1K invested. So, according to my dogcatcher ideal, now is the time to pick up BKGFY shares. The dividend from $1k invested is 88.75% of the single share price. Consider yourself alerted. 

All of the estimates above are speculation based on the past history of The Berkeley Group Holdings 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 ...

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