Daily Stock Pick: Knoll

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 fourth of five industrials sector stocks striving to join my Volio folio. This could be the nineteenth pick for Volio!

That industrials sector includes twenty-three industries all related to designing, fabricating and servicing stuff we want and use. The industrials industries range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between.

My subject today is another small-cap business equipment and supplies company named, Knoll Inc. Their trading ticker symbol is KNL. This is my first ever report on KNL.

Knoll Inc designs and manufactures appliances for use both in the workplace and at home. The company's product portfolio includes furniture, textiles, leathers, accessories, and architectural and acoustical elements, via the brands Knoll Office, KnollStudio, KnollTextiles, KnollExtra, Spinneybeck, Edelman Leather, and Holly Hunt. Knoll operates through Office and Lifestyle and Corporate segments.

It serves companies, governmental agencies, and other medium to large-sized organizations in various industries, including financial, legal, accounting, education, healthcare, and hospitality through its direct sales force and showrooms, distribution partners, and independent dealers and retailers, as well as online.

Knoll, Inc. was founded in 1938 and is headquartered in East Greenville, Pennsylvania.

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

KNL Price

Knoll's price per share closed at $23.93 yesterday. A year ago its price was $18.88. So, in the past year, its price rose by $5.05, or just over 26.7%.

Assuming Knoll's stock trades in the range of $18 to $30 this next year, its recent 23.93 price could rise by $4.07  to reach $28.00 by January 10, 2021, assuming upward price momentum reignites.

KNL Dividends

Knoll's latest declared quarterly dividend was $0.17 per share paid December 31st.

That $0.17 Q dividend equates to $0.68 annually and yields 2.84% based on yesterday's $23.93 closing price.

KNL Gains?

Adding the $0.68 annual estimated dividend to my $4.07 estimate of the Knoll Inc price upside shows a $4.75  potential gross gain, per share, which will be reduced by any costs to trade these shares.

As for costs, if we put a little over $1,000.00 today in Knoll Inc at its recent $23.93 price, would buy 42 shares of KNL.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.24 per share.

Subtract that $0.24 brokerage cost from the estimated $4.75 gross estimated gain per share leaves a net gain of $4.51 X 42 shares = $189.42 or an 18.94% net gain on a $1,005.06 investment.

Therefore, Knoll Inc, whose trading ticker symbol is KNL shows a possible 18.94% net gain including a 2.84% 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 Knoll 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, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.

 

Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts.

Catch Your Underdog Daily Dividend on Facebook! At 8:45 AM every NYSE trading day on Facebook/ Dividend Dog Catcher. Fredrik Arnold does a quick live video summary of one stock contending for a weekly slot on his new Ivy portfolio. Today he followed this script on his Underdog Daily Dividend Show!

Always remember: Root for the Underdog. 

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