Daily Stock Pick: International Paper
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 third of five materials sector stocks = striving to join my Volio folio this week. This could be my thirty-fourth pick for Volio!
That basic materials sector includes fourteen industries all related to mining, making, and delivering essential commodities, which are: agricultural inputs; aluminum; building materials; chemicals; coaking coal; copper; gold; other industrial metals and mining; other precious minerals and mining; paper & paper products; silver; steel; specialty chemicals.
My subject today is paper and paper products company named, International Paper Co. Its trading ticker symbol is IP. This is my first ever report on International Paper Co.
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
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.
IP Price
IP's price per share closed at $30.12 yesterday. A year ago their price was $44.19. Market price dropped $14.07 or nearly 32%.
Assuming IP's stock trades in the range of $24 to $40 this next year, its recent $31.12 price might rise by $3.88 to reach $34.00 by April 22, 2021.
IP Dividends
IP's most recent declared quarterly dividend was $0.5125 paid March 16th. That $0.5125 Q dividend equates to $2.05 annually and yields 6.81%.
IP Gains?
Adding the $2.05 annual estimated dividend to my $3.88 optimistic estimate of IP's price upside shows a $5.93 potential gross gain, per share, reduced by any costs to trade those shares.
A little under $1,000.00 today put into International Paper Co shares at their $30.12 price, buys 33 shares of IP.
A $10 broker fee paid half at purchase and half at sale could cost about $0.30 per share.
Subtract that $0.30 brokerage cost from my estimated $5.93 gross gain per share results in a net gain of $5.63 X 33 shares = $185.79 or an 18.6% net gain on a $993.96 investment.
Therefore, International Paper Co, whose trading ticker symbol is IP shows a possible 18.6% net gain including a 6.81% 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 International Paper Co is worth the expenditure.
Disclaimer: 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 ...
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