Daily Stock Pick: Ryder System

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-fifth pick for Volio!

That industrials sector includes twenty-three industries all dedicated 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 rental and leasing firm named, Ryder System Inc. Its trading ticker is R. This is my first report on Ryder System Inc for this portfolio.

Ryder System Inc is a provider of supply chain and fleet management solutions in the United States.

The company offers fleet leasing, fleet maintenance, truck rental, dedicated transportation, transportation management, freight brokerage, supply-chain optimization, warehouse and distribution, and small-business solutions.

Ryder serves the automotive, consumer packaged goods, energy, food and beverage, healthcare, industrial manufacturing, metals, retail, technology and electronics, and transportation and logistics industries.

Ryder System, Inc. was founded in 1933 and is headquartered in Miami, Florida.

I use three key data points to gauge dividend equities or funds like Ryder System Inc:

(1) Price

(2) Dividends

(3) Returns

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

R Price

Ryder's price per share closed at $39.00 yesterday. A year ago their price was $55.52. Price fell $16.52 or just over 29.75% last year.

Assuming Ryder's stock trades in the range of $20 to $50 this next year, its recent $39.00 price might rise by $1.00 to reach $40.00 by July 8, 2021.

R Dividends

Ryder's most recent declared quarterly dividend was $0.56, paid June 19th. That $0.56 Q dividend equates to $2.24 annually for a yield of 5.74% at yesterday's $39.00 share price.

R Gains?

Adding the $2.24 annual estimated dividend to my $1.00 optimistic estimate of Ryder System Inc's price upside shows a $3.24 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 Ryder System Inc we would buy 26 shares of R stock.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.38 per share.

Subtract that $0.38 brokerage cost from my estimated $3.24 gross gain per share results in a net gain of $2.86 X 26 shares = $74.36 for a 7.3% net gain on a $1,014.00 Investment.

Thus, Ryder System Inc shows a possible 7.3% net gain including a 5.74% 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 Ryder System Inc 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. 4 years ago Member's comment

Interesting. I had not paid attention to Ryder.