Daily Stock Pick; Weyco Group (WEYS)

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 second 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 company named, Weyco Group, Inc. Their trading ticker symbol is WEYS. This is my second ever report on WEYS. I last reported on it on September 16 for this portfolio.

Weyco Group Inc is a US-based company, engaged in the manufacture, design distribution of quality and innovative footwear.

The company designs and markets footwear for men, women, and children. It offers mid-priced leather dress shoes and casual footwear composed of man-made materials or leather. It also provides outdoor boots, shoes, and sandals.

The company organizes its business into two segments; North American wholesale and North American retail segment. It markets its apparel, accessories, and footwear under the brand name of Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters, and Umi.

The serves its end-user in the US, Canada, Europe, Australia Asia, and South Africa. Most of its revenues are generated from the US through its wholesale operations.

The company was formerly known as Weyenberg Shoe Manufacturing Company and changed its name to Weyco Group, Inc. in April 1990.

Weyco Group, Inc. was incorporated in 1906 and is based in Milwaukee, Wisconsin.

I use three key data points to gauge dividend-paying equities or funds like Weyco Group Inc:

(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.

WEYS Price

Weyco's price per share closed at $24.22 yesterday. A year ago its price was $28.04. So, in the past year, its price fell by $3.82, or just over 13.6%.

Assuming Weyco's stock trades in the range of $20 to $32 this next year, its recent $24.22 price could rise by $1.78  to reach $26.00 by January 14, 2021, assuming upward price momentum returns.

WEYS Dividends

Weyco's latest declared quarterly dividend was $0.24 per share paid January 2nd.

That $0.24 Q dividend equates to $0.96 annually and yields 3.96% based on yesterday's $24.22 closing price.

WEYS Gains?

Adding the $0.96 annual estimated dividend to my $1.78 estimate of The Weyco Group Inc price upside shows a $2.74  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 Weyco Group Inc at its recent $24.22 price, would buy 41 shares of WEYS.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.24 per share.

Subtract that $0.24 brokerage cost from the estimated $2.74 gross estimated gain per share leaves a net gain of $2.50 X 41 shares = $102.50 or a 10.25% net gain on a $993.02 investment.

Therefore, Weyco Group Inc, whose trading ticker symbol is WEYS shows a possible 10.25% net gain including a 3.96% 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 Weyco Group Inc, is worth your time and money.

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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