E Daily Stock Pick: WestRock

This week, I'm looking for the seventh materials representative of nine for my Ivy portfolio.

That basic materials sector has has thirteen industries all related to mining, making, and delivering essential commodities. They are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; industrial metals; gold; paper; silver; specialty chemicals; steel.

Today I'm reviewing a mid-cap paper and paper products company named Westrock, also known as WRKCo Inc. Their trading ticker symbol is WRK.  I last reported on this company on May 10th.

WestRock manufactures corrugated packaging and consumer packaging such as folding cartons and paperboard. After the merger of RockTenn and MeadWestvaco in fall 2015, WestRock became the largest North American producer of solid bleached sulfate and the second-largest producer of containerboard, which is used in the production of shipping containers.

WestRock Company is based in Atlanta, Georgia.

I use three key data points to gauge dividend-paying equities or funds like WestRock Company:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

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

WRK Price

WestRock's price per share closed at $37.12 yesterday. A year ago its price was $56.39. Price fell $19.27 or over 34% in the past year.

Assuming WestRock's stock trades in the range of $30.00 to $50.00 this year, WestRock's recent $37.12 price could rise by $5.88 and go to $43.00 by late-July, 2020.

WRK Dividends

WestRock's most recent quarterly dividend is $0.455 paid May 20th.

That $0.455 Q payout equates to an annual dividend of $1.82 generating a yield of 4.9% based on yesterday's $37.12 closing price.

Gains For WRK?

Adding the $1.82 annual estimated dividend to my $5.88 estimate of Compass's price upside shows a $7.76 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

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