Franchise Group, Inc., ticker FRG, is a holding company operating in the consumer cyclical business sector. This is the first of five consumer cyclical candidates competing for the fiftieth slot in my Viital folio. It is my second report on FRG for my Viital portfolio. I last mentioned it March 24th. Franchise Group, Inc. was incorporated in 2019 and is headquartered in Delaware, Ohio.

The company derives most of its revenue from franchise fees, royalties, and advertising fees related to its six franchise segments: Vitamin Shoppe, Pet Supplies Plus, Badcock, American Freight, Buddy's, and Sylvan Learning.

The company, formed from the merger of Liberty Tax and Buddy's, changed its name to Franchise Group, Inc. in 2019. Liberty Tax was sold in 2021.

Three key data points gauge any dividend equity or fund such as Franchise Group, Inc:

(1) Price

(2) Dividends

(3) Returns

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

Franchise’s price per share was $36.69 as of yesterday’s market close.  One year ago its price was $34.50. So, FRG’s share price increased by $2.19 or about 6.35% in the past year.

If Franchise’s stock trades in the range of $30.00 to $50.00 this next year, its recent $36.69 share price might rise by $8.31 to reach $45.00 by next year. My $8.31 upside estimate is about $3.00  under the median of annual price target upsides projected by 5 analysts tracking FRG for brokers.

FRG Dividends

Franchise’s most recently declared quarterly dividend of $0.625 is payable October 14th to shareholders on record as of September 29th.  So, you’ve time to catch this coming dividend.

Since April 2015 FRG has paid quarterly dividends. Except for 2019, when none were paid, the Q dividends have increased each year. The current forward-looking annual dividend of $2.50 casts an annual yield 6.8% as of Friday’s $36.69 share price.

FRG Returns

Adding the $2.50 FRG annual dividend to my estimated one-year price upside estimate of $8.31 shows a $10.81 potential gross gain, per share, to be reduced by any costs to trade FRG shares.

At Friday's $36.69 closing price, a little under $1000 would buy 27 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.37 per share.

Subtract that maybe $0.37 brokerage cost from my estimated $10.81 gross gain estimate per share results in a net gain of $10.44 X 27 shares = $281.88 for a 28.2% net gain including a 6.81% forward-looking annual dividend yield.

Over the next year our $1K investment in Franchise Group Inc shares could generate $68.10 in cash dividends. Of course, a single share of FRG stock bought at yesterday's $36.84 price is almost 2 times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a positive time to acquire FRG shares based on their forward looking dividends for the year 2022. The forecast annual dividend from $1K invested is 1.85  times greater than yesterday’s single share price. Consider yourself alerted. Now is the time.

All of the estimates above are speculation based on the past history of Franchise Group Inc. Only time and money invested in this stock will determine its market value.

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