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 fourth of four consumer cyclical sector stocks poised to join my Volio folio this week. This could be my thirty-ninth pick for Volio!

That consumer cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Plastics, Textiles, and all such consumer aimed enterprises.

My subject today is a large-cap auto parts maker named, Magna International. Its trading ticker symbol is MGA. This is my second report on Magna International. The previous report was on April 16th.

Magna International prides itself on highly entrepreneurial culture and a corporate constitution that outlines distribution of profits to various stakeholders.

This automotive supplier's product groups include exteriors, interiors, seating, roof systems, body and chassis, powertrain, vision, and electronic systems, closure systems, electric vehicle systems, tooling and engineering, and contracted vehicle assembly.

Over half of Magna's revenue comes from North America while Europe accounts for approximately 44%.

The company serves OEMs and automobile re-manufacturers.

Magna International Inc. was founded in 1957 and is headquartered in Aurora, Canada.

I use three key data points to gauge dividend equities or funds like Magna International:

(1) Price

(2) Dividends

(3) Returns

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

MGA Price

Magna's price per share closed at $42.16 yesterday. A year ago their price was $43.91. Price fell $1.75 or near 4% last year.

Assuming Magna's stock trades in the range of $20 to $50 this next year, its recent $42.16 price might rise by $2.84 to reach $45.00 by May 29, 2021.

MGA Dividends

Magna's most recent declared quarterly dividend was $0.40 payable June 5th That $0.40 Q dividend equates to $1.60 annually and yields 3.8% at Yesterday's $42.16 share price.

MGA Gains?

Adding the $1.60 annual estimated dividend to my $2.84 optimistic estimate of Magna International's price upside shows a $4.44 potential gross gain, per share, to be reduced by any costs to trade those shares.

Put little over $1,000.00  today in Magna International shares at their $42.16 price, buys 24 shares of MGA stock.

A $10 broker fee paid half at purchase and half at sale could cost about $0.42 per share.

Subtract that $0.42 brokerage cost from my estimated $4.44 gross gain per share results in a net gain of $4.02 X 24 shares = $96.48 for a 9.6% net gain on a $1,011.84 investment.

Magna International shows a possible 9.6% net gain including a 3.8% 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 Magna International is worth it.