Gannett Publishes News In USA And UK Today

Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.

 

This week my latest portfolio seeks a high-yield and growing stock in the consumer cyclicals sector. That 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.

Today I'm reviewing a publishing firm. It's a small-cap stock with market capital between $200 million an $2 billion. Its name is Gannett Co., Inc. GCI

Gannett Co., Inc., operates as a multi-platform news and information company. It spreads the news all over the USA and UK through digital, mobile, and print products. Founded in 1906, its publications now include USA Today and many local newspapers, shoppers, and radio stations. In June 2015 the company split into two publicly traded entities one for broadcasting and GCI for publishing products in the USA and UK. Gannett Co., Inc.  is headquartered in McLean, Virginia.

I use three key data points gauge the value of any dividend equity or fund like Gannett Co., Inc.: 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest. However, first three primary keys, best tell whether a company has made, is making, and will make money. 

GCI Price

Gannett's price was $9.17 per share at Friday's market close.  A year ago its price was $7.98 for a gain of $1.19 per share. Assuming Gannett's price will trade above the range of $8 to $18 next year, its price could grow another $1.19 from $9.17 to $10.36 by April, 2019. 

GCI Dividends

Gannett's most recent quarterly dividend was $0.16 declared in February, and paid March 26, 2018. That quarterly payout pegs its annual amount at $0.64 for a yield of 6.9% at Friday's $9.17 share price. 

Gains For GCI?

Adding the $0.64 annual dividend to the $1.19 potential year over year price gain makes a $1.83 projected gross annual gain, which is reduced by the cost to trade these shares. $1,000.00 invested today at the $9.17 price buys 109 shares. A $10 broker fee paid half at purchase and half at sale costs about $0.9 per share. Subtracting that $0.9 brokerage cost from the estimated $1.83 gross gain leaves a net gain of $1.74 X 109 shares = $189.66 or a 19% net gain on a $999.53 investment.

Therefore, Gannett Co., Inc.. (whose ticker symbol is GCI), now shows a possible 19% net gain including a nearly 7% dividend yield. 

Six analysts cover this stock. Two say buy. Four say hold. The six have set a median 1 year price target at $11.50 which is $1.14 more optimistic than my $10.36 year over year price upside estimate.

Those forward looking numbers were conjecture based on past year performance. The actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if Gannett Co., Inc. (GCI) is worth your time and money.

Disclosure:

Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be ...

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