Daily Stock Pick: Superior Group Of Companies

A portfolio of stocks I started September 3, 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!

I'm reviewing today the third of five consumer cyclical sector stocks striving to be picked to join the Volio folio collection. This would be the third pick for Volio!

This 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 apparel manufacturing outfit named Superior Group Of Companies Inc. Their trading ticker symbol is SGC. I have not reported on this company before now.

Superior Group Of Companies Inc is engaged in designing, manufacturing, and distributing uniforms to major domestic retailers, food-service chains, transportation, and other service industries.

It provides customer-specific uniform eStores, custom Image apparel, corporate identity apparel, career apparel, and accessories including remote staffing solutions and call center operations for the medical and health fields also for industrial, commercial, and leisure.

The operating business segments are Uniforms and Related Product, Remote Staffing Solutions, and Promotional Products. The company markets its products under the brand names of Fashion Seal Healthcare, HPI Direct, Superior I.D., and UniVogue. Most of its revenue comes from Uniforms business.

The company was formerly known as Superior Uniform Group, Inc. and changed its name to Superior Group of Companies, Inc. in May 2018.

Superior Group of Companies, Inc. was founded in 1920 and is headquartered in Seminole, Florida.

I use three key data points to gauge dividend-paying equities or funds like Superior Group Of Companies Inc. (SGC):

(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.

SGC Price

Superior's price per share closed at $16.87 yesterday. A year ago its price was $18.80. In a year its price dropped $1.93 or 10.7%.

Assuming Superior's stock trades in the range of $12 to $20.00 this year, Superior's recent $16.87 price could rise by $2.13 and get to $19.00 by mid-September 2020. If its past month's momentum continues.

SGC Dividends

Superior's latest declared quarterly dividend was $0.20 paid August 28th.

That $0.10 Q payout added to the previous three equates to $0.40 annually and yields2.37% based on yesterday's $16.87 closing price.

SGC Gains?

Adding the $0.40 annual estimated dividend to my $2.13 estimate of Superior's price upside shows a $2.53 potential gross gain, per share, which will be reduced by costs to trade these shares.

Say we put a little under $1,000.00 today into Superior at its $16.87 recent stock price, we'd buy 59 shares of Superior Group Of Companies Inc. (SGC) shares.

A $10 broker fee paid half at purchase and half at sale will cost us roughly $0.17 per share.

Subtract that $0.17 brokerage cost from the estimated $2.53 gross estimated gain leaves a net gain of $2.36 X 59 shares = $139.24 or a 14% net gain on a $995.33 investment.

Therefore, Superior Group Of Companies Inc,whose trading ticker symbol is SGC now shows a possible net gain of 14% including a 2.37% 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 Superior Group Of Companies Inc. (SGC) is worth your time and money.

Disclosure: This article was compiled by Rydlun & ...

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Duke Peters 4 years ago Member's comment

Wooooooo! $SGC