Daily Stock Pick: Pentair
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 industrials sector stocks poised to join my Volio folio this week. One could be my forty-first pick for Volio!
That industrials sector includes twenty-three industries all related to designing, fabricating, and servicing stuff we want and use. Those 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 a mid-cap specialty industrial machinery outfit named, Pentair PLC. Its trading ticker symbol is PNR. This is my first-ever report on Pentair PLC for any of my five portfolios.
Pentair is a global leader in the water treatment industry, with 10,000 employees and a presence in 34 countries.
After spinning off its electrical unit as nVent in May 2018, Pentair’s remaining water business is organized into three segments: aquatic systems, filtration solutions, and flow technologies.
Pentair generated approximately $3 billion in revenue and $516 million in adjusted operating income in 2019.
It serves businesses engaged in wholesale and retail distribution in the residential and commercial, food and beverage, and industrial verticals, as well as end-users, consumers, and original equipment manufacturers. Pentair plc was founded in 1966 and is headquartered in London, the United Kingdom.
I use three key data points to gauge dividend equities or funds like Pentair PLC:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
PNR Price
Pentair's price per share closed at $40.37 yesterday. A year ago their price was $36.21. Price grew $4.16 or nearly 11.5% last year.
Assuming PNR's stock trades in the range of $20 to $50 this next year, its recent $40.37 price might rise by $1.13 to reach $41.50 by June 10, 2021.
PNR Dividends
Pentair's most recent declared quarterly dividend was $0.19 payable August 7th. That $0.19 Q dividend equates to $0.76 annually and yields 1.88% at yesterday's $40.37 share price.
PNR Gains?
Adding the $0.76 annual estimated dividend to my $1.13 optimistic estimate of Pentair PLC's price upside shows a $1.89 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 PNR PLC shares at their $40.37 price, we'd buy 25 shares of PNR stock.
A $10 broker fee paid half at purchase and half at sale could cost $0.40 per share.
Subtract that $0.40 brokerage cost from my estimated $1.89 gross gain per share results in a net gain of $1.49 X 25 shares = $37.25 for a 3.72% net gain on a $1,009.25 investment.
Pentair PLC shows a possible 3.72% net gain including a 1.88% 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 Pentair PLC is worth it.
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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