Daily Stock Pick: Comcast (CMCSA)

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 second of four technology sector stocks poised to join my Volio folio this week. One could be my forty-fourth pick for Volio!

That technology sector includes nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, information technology and services, to the internet, scientific instruments, software, solar, and all such techno-marvels.

My subject today is a large cap information technology and services provider named, Comcast Corp. Its trading ticker is CMCSA. This is my second report on Comcast for this portfolio. I last featured it on December 6, 2019.

Comcast Corporation operates as a media and technology company worldwide.Comcast is made up of three parts. The core cable business owns networks capable of providing television, Internet access, and phone services to roughly 59 million U.S. homes and businesses, or nearly half of the country.

About half the homes in this territory subscribe to at least one Comcast service. Comcast acquired NBCUniversal from General Electric in 2011. NBCU owns several cable networks, including CNBC, MSNBC, and USA, the NBC broadcast network, several local NBC affiliates, Universal Studios, and several theme parks.

Sky, acquired in 2018, is the dominant television provider in the U.K. and has invested heavily in exclusive and proprietary content to build this position. The firm is also the largest pay-television provider in Italy and has a presence in Germany and Austria.

The company also owns the Philadelphia Flyers, as well as the Wells Fargo Center arena in Philadelphia, Pennsylvania.

Comcast Corporation was founded in 1963 and is headquartered in Philadelphia, Pennsylvania.

I use three key data points to gauge dividend equities or funds like Comcast Corp. (CMCSA):

(1) Price

(2) Dividends

(3) Returns

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

CMCSA Price

Comcast's price per share closed at $39.09 yesterday. A year ago their price was $42.71. Price fell $3.62 or just under 8.5% last year.

Assuming Comcast's stock trades in the range of $30 to $45this next year, its recent $39.09 price might rise by $3.91 to reach $43.00 by June 30, 2021.

CMCSA Dividends

Comcast's most recently declared quarterly dividend was $0.23, payable July 22nd. That $0.23 Q dividend equates to $0.92 annually for an annual yield of 2.35% at yesterday's $39.09 share price.

CMCSA Gains?

Adding the $0.92 annual estimated dividend to my $3.91 optimistic estimate of Comcast Corp. (CMCSA) price upside shows a $4.83 potential gross gain, per share, to be reduced by any costs to trade the shares.

If we put little over $1,000.00 today in Comcast Corp. we would buy 26 shares of CMCSA stock.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.38 per share.

Subtract that $0.38 brokerage cost from my estimated $4.83 gross gain per share results in a net gain of $4.45 X 26 shares = $115.70 for an 11.5% net gain on a $1,016.34 investment.

Comcast Corp. (CMCSA) shows a possible 11.5% net gain including a 2.35% 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 Comcast Corp. (CMCSA) is worth it.

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 ...

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William K. 3 years ago Member's comment

While Comcast is a good investment financially, their reputation for service quality lead them to change their name, at least in my area. That tells the other side of the story.