Daily Stock Pick: International Paper (IP)
A new portfolio of stocks I started building yesterday, named Vista, will select its first stock this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!
Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)
Today we'll review the second of four Basic Materials stock candidates for the very first selection in the Vista portfolio
My subject today is a paper and paper products packaging company named, International Paper Co Its trading ticker symbol is IP. This is my first ever report on International Paper for my new Vista portfolio.
International Paper manufactures packaging products and printing papers. It accounts for roughly one-third of the North American corrugated packaging market and about 25% of the uncoated free sheet paper market.
Though it has operations in Brazil, Russia, India, and China, more than three-fourths of its sales come from North America.
The company sells its products directly to end-users and converters, as well as through agents, resellers, and paper distributors.
International Paper Company was founded in 1898 and is headquartered in Memphis, Tennessee.
I use three key data points to gauge dividend equities or funds like International Paper Co:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
IP Price
International's price per share closed at $37.31 yesterday. A year ago its price was $40.16. Price dropped $2.85 or just over 7% last year.
Assuming International's stock trades in the range of $25 to $45 this next year, its recent $37.31 price might rise by $2.69 to reach $40.00 by September 9, 2021.
IP Dividends
International's most recently declared quarterly dividend was $0.5125. payable September 15th with a total $2.05 annually and yield 5.49% at yesterday's $37.31 price.
IP Gains?
Adding the $2.05 annual anticipated dividend to my $2.69 optimistic estimate of International's price upside shows a $4.74 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 International Paper Co at $37.31, we would buy 27 shares of IP stock.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.37 per share.
Subtract that $0.37 brokerage cost from my estimated $4.74 gross gain per share results in a net gain of $4.37 X 27 shares = $117.99 for an 11.75% net gain on a $1,007.37 investment.
Thus, International Paper Co shows a possible 11.75% net gain including a 5.49% dividend yield. It could be more, it could be less.
All of the estimates above are speculation based on the past history of International Paper Co. Only time and money invested in this stock will determine its worth.
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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