Daily Stock Pick: Comcast

A portfolio of stocks I've been building since September 3 is named Volio. 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 fifth of five communication services sector stocks striving to constitute my Volio folio. This could be the fourteenth pick for Volio!

Now the communications services sector includes seven industries all related to delivering messages to and from us. Communication services industries are: advertising agencies; broadcasting; electronic gaming and multimedia; entertainment; internet content and information; publishing; telecom services.

My subject today is a large-cap entertainment company named, Comcast Corp. Their trading ticker symbol is CMCSA. This is my first-ever report on CMCSA.

Comcast is made up of three parts. The core cable business owns networks capable of providing television, Internet access, and phone services to roughly 58 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 GE 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.

Lastly, Comcast acquired Sky in 2018. Sky 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 provides a wireless phone service under the Xfinity Mobile name; and 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-paying equities or funds like Comcast Corp:

(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.

CMCSA Price

Comcast's price per share closed at $44.04 yesterday. A year ago its price was $37.88. So, in the past year, its price rose $6.66, or about 17.6%.

Assuming Comcast's stock trades in a range of $36 to $56 this next year, it's recent $44.04 price could rise by $6.96  to reach $51.00 by early-December, 2020, assuming upward price momentum kicks back in.

CMCSA Dividends

Comcast's latest declared quarterly dividend was $0.21 payable January 29th.

That $0.21 Q dividend equates to $0.84 annually and yields 1.91% based on yesterday's $44.04 closing price.

CMCSA Gains?

Adding the $0.84 annual estimated dividend to my $5.96 estimate of CMCSA's price upside shows a $6.80 potential gross gain, per share, which will be reduced by any costs to trade these shares.

Say, for costs, a little over $1,000.00 today in Comcast Corp at its recent $44.04 price, we'd buy 23 shares of CMCSA.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.43 per share.

Subtract that $0.43 brokerage cost from the estimated $6.80 gross estimated gain per share leaves a net gain of $6.37 X 23 shares = $146.51 or a 14.6% net gain on a $1,012.92 investment.

Therefore, Comcast Corp, whose trading ticker symbol is CMCSA shows a possible 14.6% net gain including a 1.91% 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 Comcast Corp 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, ...

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