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Universal Corp, known by the ticker symbol UVV is a small-cap tobacco company, operating in the consumer defensive business sector. This is my second report on UVV for this Viital portfolio it has twice been selected for two of my previous portfolios. I last reported on UVV on 11/16/21.

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's revenue is from the Other Tobacco Operations segment, which sells dark air-cured tobacco (used primarily in cigars, pipe, and smokeless products), oriental tobacco, and services worldwide.

Further, UVV provides various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients for the food and beverage end markets, 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.

Three key data points gauge any dividend equity or fund such as Universal Corp (UVV).

(1) Price

(2) Dividends

(3) Returns

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

UVV Price

Universal’s price per share was $63.03 as of yesterday's market close. One year ago its price was $59.61. Therefore, UVV’s share price rose $3.43 or near 5.7% in the past year. 

If Universal Corp’s stock trades in the range of $45.00 to $70.00 this next year, its recent $63.03 share price might rise by $1.97 to reach $65.00 by May 26, 2023. My $1.97 upside estimate is $0.20 over the average annual price increase UVV of the stock price over the past ten years.
 

UVV Dividends 

Universal Corp’s most recently declared a quarterly dividend of $0.78 was paid on April 8th to shareholders on record as of May 10th.  

Universal Corp initiated a quarterly $0.135 dividend as of December 26, 1986. The dividend has increased nearly annually to $0.78 last year. Its current payout equates to $3.12 at an Annual rate, UVV's annual payout is calculated to deliver a 4.95% annual yield per yesterday’s $63.03 share price.
 

UVV Returns

Adding the $3.12 UVV annual dividend to my estimated one-year price upside of $1.97 shows a $5.09 potential gross gain, per share, to be reduced by any costs to trade UVV shares.  

At yesterday's $63.03 closing price per share, a little over $1000 would buy 16 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.63 per share.

Subtract that maybe $0.63 brokerage cost from my estimated $5.09 gross gain estimate per share results in a net gain of $4.46 X 16 shares = $71.36 for a 7.13% net gain including a 4.95% forward-looking dividend yield. 

So it is that Universal Corp shows a possible 7.13% net gain including a 4.95% forward-looking dividend yield. 

Over the next year at this time, our $1000 investment in Universal Corp shares might generate $49.50 in cash dividends. Of course, a single share of UVV stock bought at yesterday's $63.03 price is about $13.53 more than the dividend income from our $1000.00 investment. 

So, by my dogcatcher ideal, this is a rotten time to pick up Universal Corp shares based on their forward-looking dividends for the year 2022. A forthcoming annual dividend from $1K invested is estimated to be $13.53 less than yesterday's single share price. Consider yourself alerted. It's a sign. Wait for UVV shares to drop to $55.80 to 

All of the estimates above are speculation based on the past history of  Universal Corp (UVV). Only time and money invested in this stock will determine its market value.