Daily Stock Pick: Old Republic
The portfolio of stocks I started this week, named Volio Folio, holds 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 financial services sector stocks this week striving to become the first in the Volio folio collection. This could be the first pick for Volio!
That financial sector which includes twenty industries ranging from Asset Management to 8 kinds of Banks, Credit, Exchanges, 6 kinds of Insurance, Savings, and all such financial concerns.
My subject today is a mid-cap insurance - diversified firm named Old Republic International Corp. Their trading ticker symbol is ORI.I previously reported on this company on December 20, 2018, for my Ivy portfolio.
Old Republic International Corporation offers a diverse range of specialized insurance products to individuals and institutions.
The firm's property-casualty business, which accounted for more than half of premium in 2012, and almost 80% of pretax operating income, offers commercial liability products for risks that include workers' compensation, autos, and general liability.
The title insurance business composes most of the remaining premium, with a minor assist from a tiny life insurance presence.
Old Republic International Corporation was founded in 1887 and is headquartered in Chicago, Illinois.
I use three key data points to gauge dividend-paying equities or funds like Old Republic International Corporation (ORI):
(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.
ORI Price
ORI's price per share closed at $22.44 yesterday. A year ago its price was $22.67. In a year its price fell $0.23 or 1%.
Assuming ORI's stock trades in the range of $20 to $25.00 this year, ORI's recent $22.44 price could rise by $1.56 and go to $24.00 by early September 2020.
ORI Dividends
ORI's latest declared quarterly dividend was $0.20 payable September 16th.
That $0.20 Q payout added to the previous 3equates to $0.80 annually and yields3.57% based on yesterday's $22.44 closing price.
ORI Gains?
Adding the $0.80 annual estimated dividend to my $1.56 estimate of ORI's price upside shows a $2.36 potential gross gain, per share, which will be reduced by costs to trade these shares.
Say we put a little over $1,000.00 today at the $22.44 recent stock price, we'd buy 45 Old Republic International Corp (ORI) shares.
A $10 broker fee paid half at purchase and half at sale will cost us $0.22 per share.
Subtract that $0.22 brokerage cost from the estimated $2.36 gross estimated gain leaves a net gain of $2.14 X45 shares = ($96.30) or a 9.6% net gain on a $1,009.80 investment.
Therefore, Old Republic International Corp,whose trading ticker symbol is ORI now shows a possible net gain of 9.6% including a 3.57% 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 Old Republic International Corp (ORI) 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 ...
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