A portfolio of stocks I've been building since September 3 is named Volio. 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 first of five Consumer cyclical sector stocks striving to join my Volio folio. This could be the twentieth pick for Volio.

That 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 mid-cap restaurant company named, The Wendy's Co. Their trading ticker symbol is WEN.  This is my second ever report on WEN. I selected it May 17, 2019 for my Ivy portfolio.

The Wendy's Co is a quick-service restaurants franchiser, operating restaurants under the brand name Wendy's. Wendy's are known for its hamburger sandwiches in the United States and Canada.

Other than sandwiches, their menu also offers chicken nuggets, chili, French fries, baked potatoes, freshly prepared salads, soft drinks, Frosty desserts and kids' meals.

Wendy's are also present in various other foreign countries and U.S. territories. Revenues are generated from sales at own restaurants as well as from franchise-related royalties, rents, and fees from Wendy's.

The company was formerly known as Wendy's/Arby's Group, Inc. and changed its name to The Wendy's Company in July 2011.

The Wendy's Company was founded in 1969 and is based in Dublin, Ohio.

I use three key data points to gauge dividend paying equities or funds like

The Wendy's Co (WEN):

(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.

WEN Price

Wendy's price per share closed at $21.60 Friday. A year ago its price was $16.43. So, in the past year its price rose by $5.17, or almost 31.5%.

Assuming Wendy's stock trades in the  range of $16 to $24 this next year, its recent $21.60 price could rise by $1.40  to reach $23.00 by January 13, 2021, assuming upward price momentum returns.

WEN Dividends

Wendy's latest declared quarterly dividend was $0.12 per share paid December 16th.

That $0.12 Q dividend equates to $0.48 annually and yields 2.22% based on Friday's $21.60 closing price.

WEN Gains?

Adding the $0.48 annual estimated dividend to my $1.40 estimate  of The Wendy's Co price upside shows a $1.88  potential gross gain, per share, which will be reduced by any costs to trade these shares.

As for costs, if we put a little under $1,000.00 today in The Wendy's Co at its recent $21.60 price, would buy 46 shares of WEN.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.22 per share.

Subtract that $0.22 brokerage cost from the estimated $1.88 gross estimated gain per share leaves a net gain of $1.66 X 46 shares = $76.36 or a 7.64% net gain on a $993.60 investment.

Therefore, The Wendy's Co shows a possible 7.64% net gain including a 2.22% 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 he Wendy's Co (WEN), is worth your time and money.