Image Source: Unsplash

The Interpublic Group of Companies Inc. with the ticker IPG is a large-cap advertising agency operating in the communication services business sector. This is the fifth of five communication candidates competing for the forty-seventh slot in my Viital folio. It is my second report on IPG for my Viital portfolio. I last discussed the company on June 10.

Interpublic Group is among the world’s largest ad-holding companies based on annual revenue.

It provides traditional advertising services along with digital and other services such as public relations through various acquisitions.

IPG makes these services available in over 100 countries. The company generates more than 75% of its revenue from developed regions such as the United States and Europe.

The company was formerly known as McCann-Erickson Incorporated and changed its name to The Interpublic Group of Companies, Inc. in January 1961.

The Interpublic Group of Companies, Inc. was founded in 1902 and is headquartered in New York, New York.

Three key data points gauge any dividend equity or fund such as Interpublic Group:

(1) Price

(2) Dividends

(3) Returns

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

IPG Price

Interpublic’s price per share was $29.32 as of yesterday's market close.  One year ago its price was $36.45. Thus, IPG’s share price fell by $7.13, or about 20% in the past year.

If Interpublic Group’s stock trades in the range of $20.00 to $40.00 this next year, its recent $19.32 share price might rise by $3.68 to reach $33.00 by next year. My $3.68 upside estimate is $0.87 under the median of one-year targets from ten analysts covering IPG  for brokers.
 

IPG Dividends

Interpublic Group’s most recently declared a quarterly dividend of $0.29 is payable September 25th to shareholders on record as of August 31st.

Since March 25, 2011, IPG has paid quarterly dividends increasing annually.  The current forward-looking annual dividend of $1.16. projects an annual yield of 3.96% as of yesterday’s $29.32 share price.
 

IPG Returns

Adding the $1.16 IPG annual dividend to my estimated one-year price upside estimate of $3.68 shows a $4.84 potential gross gain, per share, to be reduced by any costs to trade IPG shares.

At yesterday's $29.32 closing price, a little under $1000 would buy 34 shares.

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

Subtract that maybe $0.29 brokerage cost from my estimated $4.84 gross gain estimate per share results in a net gain of $4.55 X 34 shares = $154.70, for a 15.5% net gain including a 3.96% forward-looking annual dividend yield.

Over the next year, our $1K investment in Interpublic Group shares could generate $39.60 in cash dividends. Of course, a single share of PG stock bought at yesterday's $29.32 price is over $10 less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a positive time to acquire IPG shares based on their forward-looking dividends for the year 2022. The forecast annual dividend from $1K invested is $10.28 less than yesterday’s single share price. Consider yourself alerted. Now is the time.

All of the estimates above are speculation based on the past history of The Interpublic Group of Companies. Only time and money invested in this stock will determine its market value.

More By This Author:

Daily Stock Analysis: Nexstar Media
Daily Stock Analysis: Deutsche Telekom (DTEGY)
Daily Stock Analysis: Paramount Global