Daily Stock Pick: Big Lots - Monday, April 13

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 first of five consumer cyclical sector stocks this week striving to join my Volio folio. This could be my thirty-third pick for Volio!

That industrials sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Plastics, Textiles, and all such consumer aimed enterprises.

My subject today is a discount stores company named, Big Lots Inc. Their trading ticker symbol is BIG. This is my third ever report on Big Lots Inc. Most recently I discussed this stock on February 21st.       

Big Lots Inc is a U.S.-based company principally engaged in operating discount retail stores.

The company provides a broad range of merchandise, including food, consumables, soft home products, hard home products, furniture, electronics and accessories, and seasonal products.

The company sources merchandise from traditional and close-out channels. In addition to merchandise, the company sells gift cards, issues merchandise credits, and more.

The company operates stores throughout the United States, with around one-third of its stores in California, Texas, Ohio, and Florida.

As of February 2, 2019, it operated 1,401 stores in 47 states and an e-commerce platform.

Big Lots, Inc. was founded in  1967 and is headquartered in Columbus, Ohio.

I use three key data points to gauge dividend equities or funds like Big Lots 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.

BIG Price

Big Lots price per share closed at $19.63 yesterday. A year ago their price was $38.24. Market price has dropped $18.61 or nearly 48.7%.

Assuming Big Lots' stock trades in the range of $8 to $24 this next year, its recent $19.63 price might rise by $1.37 to reach $21.00  by April 13, 2021.

BIG Dividends

Big Lots most recent declared quarterly dividend was $0.30 paid April 3rd. That $0.30 Q dividend shows an annual payout of $1.20 to yield 6.11% at yesterday's $19.63 share price.

BIG Gains?

Adding the $1.20 annual estimated dividend to my $1.37 estimate of Big Lots Inc price upside shows a $2.58 potential gross gain, per share, reduced by any costs to trade those shares.

Put a little over $1,000.00 today in Big Lots Inc at the $19.63  share price, buys 51 shares.

A $10 broker fee paid half at purchase and half at sale could cost about $0.20 per share.

Subtract that $0.20  brokerage cost from my estimated $2.58 gross gain per share results in a net gain of $2.38 X 51 shares = $121.38 or a 12.13% net gain on a $1,001.13 investment.

Therefore, Big Lots Inc, whose trading ticker symbol is BIG shows a possible 12.13% net gain including a 6.11% 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 Big Lots 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 ...

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