Daily Stock Pick: ABM Industries (ABM)

A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the fourth of four industrials sector stocks this week striving to join my Volio folio. This could be my thirty-second pick for Volio!

That industrials sector includes twenty-three industries all related to designing, fabricating and servicing stuff we want, know and use. The industrials industries range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between.

My subject today is a small-cap specialty business services company named, ABM Industries Inc. Their trading ticker symbol is ABM. This is my first ever report on ABM Industries Inc.

ABM Industries Inc is a provider of integrated facility solutions. It offers its solutions through six segments namely Business and Industry, Aviation, Technology and Manufacturing, Education, Technical Solutions, and Healthcare. It derives a majority of the revenue from the Business and Industry segment that encompasses janitorial, facilities engineering, and parking services for commercial real estate properties and sports and entertainment venues, vehicle maintenance and other services to rental car providers.

The company was founded in 1909 and is headquartered in New York, New York

I use three key data points to gauge dividend equities or funds like ABM Industries Inc:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.

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

ABM Price

ABM's price per share closed at $27.83 yesterday. A year ago their price was $36.49. Market price has dropped $8.66 or nearly 24%.

Assuming ABM's stock trades in the range of $18 to $36 this next year, its recent $27.83 price might rise by $1.17 to reach $29.00 by April 9, 2021.

ABM Dividends

ABM's most recent declared quarterly dividend was $0.185 payable May 4th. That $0.185 Q dividend shows an annual payout of $0.74 to yield 2.66% at yesterday's $27.83 share price.

ABM Gains?

Adding the $0.74 annual estimated dividend to my $1.17 estimate of ABM Industries Inc price upside shows a $1.91 potential gross gain, per share, reduced by any costs to trade those shares.

Put a little over $1,000.00 today in ABM Industries Inc at the $27.83  share price, buys 36 shares.

A $10 broker fee paid half at purchase and half at sale could cost about $0.28 per share.

Subtract that $0.28  brokerage cost from my estimated $1.91 gross gain per share results in a net gain of $1.63 X 36 shares = $58.68 or a 5.85% net gain on a $1,001.88 investment.

Therefore, ABM Industries Inc, whose trading ticker symbol is ABM shows a possible 5.85% net gain including a 2.66% dividend yield. It could be more, it could be less.   

The above speculation is based on past performance and supposition. Only time and money invested will tell if ABM Industries Inc is worth the expenditure.

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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