Daily Stock Pick: PetMed

A portfolio of stocks I've been building since September 3 is named Volio Folio. 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 consumer cyclical stocks striving to be picked to join the Volio folio. This could be the 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 small cap pharmaceutical retailer, PetMed Express Inc. Their trading ticker symbol is PETS. I last reported about PetMed Express Inc. on January 31, 2019 for the Safari Portfolio.

PetMed Express Inc along with its and subsidiaries is a leading nationwide pet pharmacy.

The company markets prescription and non-prescription pet medications, health products, and supplies for dogs and cats, direct to the consumer.

It sells its products through its Internet Website; telephone contact center; and direct mail/print through brochures and postcards. PetMed Express, Inc. was founded in 1996 and is headquartered in Delray Beach, Florida

I use three key data points to gauge dividend-paying equities or funds like PetMed Express Inc. (PETS):

(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.

PETS Price

PetMed's price per share closed at $24.64 yesterday. A year ago its price was $27.94. In the past year, its price fell to $3.30 or 11.8%.

Assuming PetMed's stock trades in the range of $16.00 to $30.00 this next year, it's recent $24.64. price could rise by $0.36 and maybe get to $25.00 by late-October, 2020, assuming some upward price momentum kicks back in.

PETS Dividends

PetMeds latest declared quarterly dividend was $0.27, payable November 15th.

That $0.27 Q dividend equates to $1.08 annually and yields 4.38% based on yesterday's $24.64 closing price.

PETS Gains?

Adding the $1.08 annual estimated dividend to my $0.36 estimate of PetMed's price upside shows a $1.44 potential gross gain, per share, which will be reduced by any costs to trade these shares.

Say we put a little under $1,000.00 today into PetMed Express Inc. at its recent $24.64 price, we'd buy 40 shares of PETS.

A $10 broker fee paid half at purchase and half at sale could cost us $0.25 per share.

Subtract that $0.25 brokerage cost from the estimated $1.44 gross estimated gain leaves a net gain of $1.19 X 40 shares = $47.60 or a 4.8% net gain on a $985.60 investment.

Therefore, PetMed Express Inc, whose trading ticker symbol is PETS shows a possible 4.8% net gain including a 4.38% 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 PetMed Express Inc. (PETS) is worth your time and money.

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 ...

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