Daily Stock Pick: Polyus PJSC

That portfolio of stocks I've been building since September 3, 2019, named Volio, now 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!

Day by day, starting the day after Labor Day, I'll start building a new portfolio of 52 dividend dogs at a one stock per-week pace until September 2022! That new portfolio, named Vista, will become the sixth portfolio I've assembled over the past six years.

Today we'll review the fourth of five Dogs of the Year top finishing stocks that have performed the best during their one-year stint in each of my first five portfolios. We'll look at where the stock is now. 

Perhaps one of the stocks I discuss this week could be one you'll want to buy and hold forever.

The Ivy Top Dog or DOTY and my subject for today is a large-cap gold stock named, Polyus PJSC. Its trading ticker is OPYGY. This is my first report on the dog of this year (DOTY) selection for 2020. 

Polyus PJSC and its subsidiaries are engaged in the extraction, refining and sale of gold. The mining and processing facilities of the company are located in Krasnoyarsk, Irkutsk, Magadan regions and the Sakha Republic of the Russian Federation. The company is also engaged in exploration, construction, and research activities in order to maintain its operations. The operating business segments are Olimpiada business unit, Blagodatnoye business unit, Natalka business unit, Verninskoye business unit, Kuranakh business unit, Alluvials business unit, Exploration business unit, Capital construction unit, and Sukhoi Log business unit.

The company was founded in 2006 and is based in Moscow, Russia. 

Public Joint Stock Company Polyus is a subsidiary of Polyus Gold International Limited.

I use three key data points to gauge dividend equities or funds like Polyus PJSC:

(1) Price

(2) Dividends

(3) Returns

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

OPYGY Price

Polyus's price per share closed at $115.01 yesterday. A year ago its price was $54.98. Price 54.98 soared $60.03 or over 109% last year.

Assuming Polyus's stock trades in the range of $40 to $140 this next year, its recent $115.01 price might rise by $19.99 to reach $135.00 by September 3, 2021. 

OPYGY Dividends

Polyus's most recently declared Annual dividend was $1.72. paid August 27, yielding 1.49% at yesterday's $115.01 price.

OPYGY Gains?

Adding the $1.72 annual anticipated dividend to my $19.99 optimistic estimate of Polyus's price upside shows a $21.71 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 Polyus PJSC  at $115.01, we would buy 9 shares of OPYGY stock.

A $10 broker fee paid half at purchase and half at sale could cost us about $1.11 per share.

Subtract that $1.11 brokerage cost from my estimated $21.71 gross gain per share results in a net gain of $20.60 X 9 shares = $185.40 for an 18.5% net gain on a $1.035.09 investment.

Thus, Polyus PJSC shows a possible 18.5% net gain including a 1.49% 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 Polyus PJSC 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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William K. 3 years ago Member's comment

Certainly the portfolio looks like a collection of winners. But I have heard that "past performance is no promise of future performance." And yet folks tend to avoid those that are consistently poor performers.