Interpublic Dividends Date Back To McCann-Erickson

This week I'm seeking a prestigious and long-term dividend paying stock from the consumer cyclical sector. 

That cyclicals 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 mid-cap advertising agency named The Interpublic Group of Companies.  It's trading ticker symbol is IPG

The Interpublic Group of Companies Inc is an advertising and marketing service company. Its services include consumer advertising, digital marketing, communications planning & media buying, public relations & specialized communications disciplines worldwide.

The company operates through two segments, Integrated Agency Networks and Constituency Management Group. It offers consumer advertising, digital marketing, communications planning and media buying, public relations, and specialized communications disciplines.

The company also provides various diversified services, including public relations, meeting and event production, sports and entertainment marketing, corporate and brand identity, and strategic marketing consulting. 

It offers its services under several brands comprising McCann, MullenLowe, IPG Mediabrands, Carmichael Lynch, Deutsch, Hill Holliday, and The Martin Agency, as well as Foote, Cone & Belding. 

The company was formerly known as McCann-Erickson Incorporated and changed its name to The Interpublic Group of Companies, Inc. in January 1961. The Interpublic Group of Companies, Inc. was founded in 1902 and is headquartered on Madison Avenue in New York, New York.

I use three key data points to gauge the value of any dividend equity or fund like The Interpublic Group of Companies (IPG): 

(1) Price

(2) Dividends

(3) Returns

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

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

IPG Price

Interpublic's  price per share was $22.71 at yesterday's market close.  A year ago its price was $20.04 for a gain of $2.67 per share.  

Assuming Interpublic's price will trade in the range of $19 to $26 next year, perhaps that $0.31 gain could repeat and take Interpublic's current $22.71 price to $25.48 by mid-September, 2019. 

IPG Dividends

Interpublic's most recent quarterly dividend was $0.21 declared August 21st  and payable tomorrow September 18th. That dividend was increased from $0.18in March.

At this most recent $0.21 quarterly pay rate, WestRock's annual dividend is calculated at $0.84 yielding 3.7% at Friday's closing $22.71price.

Gains For IPG?

Adding the $.84 estimated annual dividend to the $2.67 estimated annual price gain for Interpublic makes a $3.51  gross annual per share gain, which will be reduced by costs to trade the shares.  

 A little under $1,000.00 invested today at the $22.71 recent price buys 44 Interpublic Group of Companies (IPG) shares. 

A $10 broker fee paid half at purchase and half at sale costs $0.23 per share

Subtracting that $0.23 brokerage cost from the estimated $3.51 gross gain leaves a net gain of $3.28 X 44 shares 

= $144.32

or a 14.4% net gain on a $999.24 investment.

Therefore, Interpublic Group of Companies , whose trading ticker symbol is IPG, now show a possible 14.4% net gain including a 3.7% dividend yield. 

Twelve brokers cover this stock:

One says "buy" IPG.

Two say IPG will "outperform" its peers.

Eight say IPG is a stock to "hold".

One sasy IPGv wil "underperform".

 

Thus, the analyst consensus recommendation number is 2.75 or "hold".

The median price target set by those ten brokers is $1.18 under the $25.48 year over year price target I named. 

So, you could look at all those various numbers this way, Interpublic Group of Companies, whose ticker symbol is IPG  has made money, is making money, and could net a 14.4% net annual gain including a 3.7% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. Actual results remain to be seen.  Those results will determine if Interpublic Group of Companies (IPG) is worth your time and money.

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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