Daily Stock Pick: Bloomin' Brands

A portfolio of stocks I've been building since September 3 is named Volio Folio. It 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 five consumer cyclical stocks striving to be picked to join the Volio folio. This could be the ninth pick for Volio!

That consumer cyclical 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 small-cap restaurateur Bloomin Brands Inc. Their trading ticker symbol is BLMN. This is my first report on Bloomin Brands Inc.

Bloomin' Brands Inc operates as a casual dining restaurant company. Its brand includes Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse and Wine Bar.

The company owns and operates its restaurants, and the remainder is franchised. It derives revenue mainly from the United States, but the company has a presence in Brazil and South Korea with company-owned Outbacks and Carrabbas. In addition, it also has exposure to several countries, predominantly in Asia, principally through franchising.

Bloomin' Brands, Inc. was incorporated in 2006 and is headquartered in Tampa, Florida.

I use three key data points to gauge dividend-paying equities or funds like

Bloomin' Brands, 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.

BLMN Price

Bloomin's price per share closed at $19.80 yesterday. A year ago its price was $20.40. In the past year, its price fell $0.60 or nearly 3%.

Assuming Bloomin's stock trades in a range of $16.00 to $22.00 this next year, it's recent $19.80. price could rise by $1.20 and maybe get to $21.00 by early-November, 2020, assuming the upward price momentum returns.

BLMN Dividends

Bloomin's latest declared quarterly dividend was $0.10, paid August 21st.

That $0.10 Q dividend equates to $0.40 annually and yields 2.02% based on yesterday's $19.80 closing price.

BLMN Gains?

Adding the $0.40 annual estimated dividend to my $1.20 estimate of Bloomin's price upside shows a $1.60 potential gross gain, per share, which will be reduced by any costs to trade these shares.

Say we put a little under $1,000.00 today into Bloomin' Brands Inc at its recent $19.80 price, we'd buy 50 shares of BLMN.

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

Subtract that $0.20 brokerage cost from the estimated $1.60 gross estimated gain leaves a net gain of $1.40 X 50 shares = $70.00 or a 7.1% net gain on a $990.00 investment.

Therefore, Bloomin' Brands Inc, whose trading ticker symbol is BLMN shows a possible 7.1% net gain including a 2.02% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to learn if Bloomin' Brands Inc is worth your time and money.

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, ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.