Daily Stock Analysis: Universal Corp (UVV)

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 nineteenth stock this 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 look at a mid-cap tobacco company named Universal Corp. Its trading ticker symbol is UVV  This is my first report on Universal Corp for Vista. It was also reviewed but not selected for my Volio folio No 5.

Universal Corp is a global leaf tobacco supplier. The company procures leaf tobacco from farmers, processes it, and sells it to companies that manufacture consumer tobacco products. 

Universal does not manufacture or sell any consumer products itself. More than 15% of total company revenue comes from the North America segment, which sells cigarette tobacco in North America. 

Approximately three-quarters of revenue is from the Other Regions segment, which sells cigarette tobacco outside North America. 

The remainder of the company revenue is from the Other Tobacco Operations segment, which sells dark air-cured tobacco (used primarily in a cigar, pipe, and smokeless products), oriental tobacco, and services worldwide.

Further, it produces and sells dehydrated and juiced fruit and vegetable products, as well as provides water pipe style leaf tobacco; and recycles waste materials from tobacco production. 

The company was founded in 1886 and is headquartered in Richmond, Virginia.

I use three key data points to gauge dividend equities or funds like Walgreens Universal Corp:

(1) Price

(2) Dividends

(3) Returns

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

UVV Price

Universal's price per share closed at $52.58 yesterday. A year ago its price was $55.95. Price dropped $3.37 or a little over 6% last year.

If Universal's stock trades in the range of $40 to $60 this next year, its recent $52.58 price might rise by $4.42 to reach $57.00 by January 15, 2022. 

UVV Dividends

Universal's most recently declared quarterly dividend was $0.77 payable on February 1st. Dividends are estimated to total $3.08 per share annually and yield 5.86% at yesterday's $52.58 closing price.

UVV Gains?

Adding the $3.08 annual Universal Corp anticipated dividend to my $4.42 optimistic price upside shows a $7.50 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in Universal Corp at $52.58 per share and we'd buy 19 shares of UVV stock.

A $10 broker fee (if any) paid half at purchase and half at sale could cost us about $0.53 per share.

Subtract that maybe $0.53 brokerage cost from my estimated  $7.50 gross gain per share results in a net gain of $6.97 X 19 shares = $132.43 for a 13.2% net gain on a $999.02 investment.

Universal Corp shows a possible 13.2% net gain including a 5.86% dividend yield. It could be more, it could be less.  

All of the estimates above are speculation based on the past history of Universal Corp. 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 solicitation, ...

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