Daily Stock Report: Omnicom Group

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The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista. I will select its fifteenth stock this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today I'll review the fourth of five communication services sector stock candidates vying to be that fifteenth selection in Vista.

Today we look at a large-cap advertising holding company named Omnicom Group Inc. Its trading ticker symbol is OMC. This is my second report on Wiley for Vista. I last reviewed this company on November 18th.

Omnicom is the world's second-largest ad holding company, based on annual revenue. The American firm's services, which include traditional and digital advertising and public relations, are provided worldwide, with over 85% of its revenue coming from more developed regions such as North America and Europe.

It operates in the United States, Canada, Puerto Rico, South America, Mexico, Europe, the Middle East, Africa, Australia, Greater China, India, Japan, Korea, New Zealand, Singapore, and other Asian countries.

The company is based in New York, New York.

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

(1) Price

(2) Dividends

(3) Returns

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

OMC Price

Omnicom's price per share closed at $64.71 yesterday. A year ago its price was $81.01. Price is down $16.30 or about 20% on the year.

If Omnicom's stock trades in the range of $45 to $70 this next year, its recent $64.71 price might rise by $2.04 to reach $66.75 by December 17, 2021. 

OMC Dividends

Omnicom's most recently declared quarterly dividend was $0.65 payable on January 11th. Dividends are estimated to total $2.60 per share annually and yield 4.02% at yesterday's $64.71 closing price.

OMCGains?

Adding the $2.60 annual anticipated dividend to my $2.04 optimistic estimate of Omnicom's price upside shows a $4.64 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little under $1,000.00 today in Omnicom Group  Inc at $64.71 and we would buy 15 shares OMC stock.

A $10 broker fee (if any) paid half at purchase and half at sale could cost us about $0.67 per share.

Subtract that maybe $0.67 brokerage cost from my estimated  $4.64 gross gain per share results in a net gain of $3.97 X 15 shares = $59.55 for a 5.96% net gain on a $970.65 investment.

So it goes that Omnicom Group Inc shows a possible 5.96% net gain including a 4.02% dividend yield. It could be more, it could be less.  

All of the estimates above are speculation based on the past history of Omnicom Group Inc. Only time and money invested in this stock will determine its 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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Andrew Armstrong 4 years ago Member's comment

Good find.