Daily Stock Report: Amcor

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Amcor PLC is known by the ticker symbol AMCR and is a member of the consumer cyclical business sector as a large-cap packaging and containers enterprise. This is my first ever report on Amcor PLC for this Vista portfolio. I have reported on it in other venues.

Amcor is a global plastics packaging behemoth, with global sales of USD 12.5 billion in fiscal 2020 following the acquisition of Bemis in June 2019.

Amcor’s operations span 43 countries globally and include significant emerging-market exposure equating to circa 20% of sales. 

Amcor’s capabilities span flexible and rigid plastic packaging, which sells into defensive food, beverage, healthcare, household, and personal-care end markets.

The company is headquartered in Zurich, Switzerland.

Three key data points gauge dividend equities or funds like Amcor PLC:

(1) Price

(2) Dividends

(3) Returns

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

AMCR Price

Amcor's price per share was $11.45 as of yesterday's market close. One year ago its price was $10.75. So AMCR's price has gained over 6.5% in the past year. 

If AMCR's stock trades in the range of $10 to $15.00 this next year, its recent $1145 price might rise by $0.85 to reach $12.30 by July 7, 2022. My estimate is  $0.03 lower than the median of the annual price gains estimated by eight analysts tracking AMCR for brokerage houses.

AMCR Dividends

Amcor's most recent quarterly dividend payout of $0.1175 was paid June 15, 2021, and equates to $0.47 annually to yield 4.10% annually based on yesterday's $11.45 closing price. AMCR has paid increasing annual dividends for 2 years.

AMCR Returns

Adding the $0.47 annual AMCR forward-looking dividend to my $0.85 price upside estimate shows a $1.32 potential gross gain, per share, to be reduced by any costs to trade Amcor PLC shares.  

At yesterday's $11.45 price per share, a little under $1000 would buy 87 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us $0.115 per share.

Subtract that maybe $0.115 brokerage cost from my estimated $1.32 gross gain per share results in a net gain of $1.205 X 87 shares = $104.84 for a 10.48% net gain on a $996.15 investment.

So it is that Amcor PLC shows a possible 18.8% net gain including a 4.10% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in AMCR would generate $41.00 in cash dividends. And a single share bought at yesterday's closing price was $11.45! Thus, AMCR's share price is over 3.5 times less than the dividend income from $1K invested. So, according to the dividend dogcatcher ideal, this is the prime time to pick up AMCR because the dividend from $1k invested exceeds the single share price by over 3.5 times. Consider yourself alerted.

All of the estimates above are speculation based on the past history of Amcor PLC. Only time and money invested in this stock will determine its true worth.

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 ...

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