Daily Stock Analysis: Weyco Group

The new 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 sixth 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 consumer cyclical sector stock candidates vying to be the sixth selection for the Vista portfolio.

My subject today is a nano-cap footwear and accessories manufacturer, Weyco Group Inc. Its trading ticker symbol is WEYS. This is my first report on Weyco Group Inc for this Vista dog of the week portfolio. In January, April, and July I reviewed it for the Volio portfolio but never selected it.  

Weyco Group Inc is a US-based company, engaged in the manufacturing, designing, and distribution of footwear. 

The company designs and markets footwear for men, women, and children. The company organizes its business into two segments; the North American wholesale and the North American retail segment. 

It markets its apparel, accessories, and footwear under the brand name of Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters, and Umi. 

The company has operational footprints in the United States, Canada, Europe, Asia, and Australia among others. It generates a majority of its revenue from the United States.

The company was formerly known as Weyenberg Shoe Manufacturing Company and changed its name to Weyco Group, Inc. in April 1990. 

Weyco Group, Inc. was incorporated in 1906 and is based in Milwaukee, Wisconsin.

I use three key data points to gauge dividend equities or funds like Weyco Group Inc:

(1) Price

(2) Dividends

(3) Returns

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

WEYS Price

Weyco's price per share closed at $16.73 yesterday. A year ago its price was $24.61. Price fell $7.88 or just over 32% last year.

If Weyco's stock trades in the range of $15 to $20 this next year, its recent $16.73 price might rise by $0.47 to reach $17.20 by October 16, 2021. 

WEYS Dividends

Weyco's most recently declared quarterly dividend was $0.24 paid on September 30th. Dividends are estimated to total $0.96 per share annually and yield 5.74% at yesterday's $16.73 closing price.

WEYS Gains?

Adding the $0.96 annual anticipated dividend to my $0.40 optimistic estimate of Weyco's price upside shows a $1.36 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put a little over $1,000.00 today in Weyco Group Inc at $16.73, we would buy 60 shares of WEYS stock.

A $10 broker fee paid half at purchase and half at sale would cost us about $0.17 per share.

Subtract that $0.17 brokerage cost from my estimated $1.36 gross gain per share results in a net gain of $1.19 X 60 shares = $71.40 for a 7.1% net gain on a $1,003.80 investment.

So it goes that Weyco Group Inc shows a possible 7.1% net gain including a 5.74% dividend yield. It could be more, it could be less. 

All of the estimates above are speculation based on the past history of Weyco Group 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 solicitation, ...

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