Natural Health Trends Takes A Breather
This week I'm seeking a prestigious and long-term dividend-paying stock from the consumer defensive sector.
That defensive sector includes thirteen industries all related to providing those convenient packaged goods we've just gotta have. Industries like: beverages, brewed, soft, or distilled; confections; discount stores; education & training; farm products; food distribution; grocery stores; household & personal products; packaged goods; pharmaceutical retailers; tobacco.
Today I'm reviewing a small-cap household and personal products firm named Natural Health Trends Corporation. It's trading ticker symbol is NHTC.
Natural Health Trends Corp is engaged in the direct selling industry, selling lifestyle enhancement products, cosmetics, personal care, and dietary supplements, in a process called network marketing, or multi-level marketing.
The company provides personal care, wellness, and lifestyle products under the NHT Global brand.
The company's wellness products include liquid, encapsulated, tableted, and powder dietary and nutritional supplements.
Its herbal products are herbal supplements. Its beauty products consist of anti-aging and hydrating cleansers, creams, lotions, serums, and toners. The lifestyle products include weight management, intimacy support, and energy enhancing supplements. In addition, the company offers home and car appliances; and infant and toddler bath and body care products.
It sells its products directly to consumers through an e-commerce retail platform. The company has operations in the United States, Canada, Peru, Hong Kong, China, Taiwan, South Korea, Russia, Kazakhstan, Europe, and internationally.
Natural Health Trends Corp. was founded in 1988 and is headquartered in Rolling Hills Estates, California.
I use three key data points to gauge the value of any dividend equity or fund like Natural Health Trends Corporation:
(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.
NHTC Price
NHTC's price per share was $23.63 at yesterday's market close. A year ago its price was $22.61 for a gain of $1.02 per share.
Assuming NHTC's price will trade in the range of $14.50 to $28.50 next year, NHTC's current $23.63 price could maybe double its past year upside grow $2.04 to $25.67 by late-September, 2019.
NHTC Dividends
NHTC's most recent quarterly dividend was $0.40 declared August 1st and paid August 24th. That dividend was preceded by one of $1.90 in May. That's one very variable dividend stream.
At this most recent $0.40 quarterly pay rate, NHTC's annual dividend is calculated at $1.60 yielding 6.7% at yesterday's closing $23.63 price.
Gains For NHTC?
Adding the $1.60 estimated annual dividend to my double annual $2.04 upside for NHTC makes a $3.64 potential gross annual per share gain, which is reduced by the costs to trade the shares.
A little under $1,000.00 invested today at the $23.63 recent price buys 42 Natural Health Trends Corporation shares.
A $10 broker fee paid half at purchase and half at sale costs $0.24 per share
Subtracting that $0.24 brokerage cost from the estimated $3.64 gross gain leaves a net gain of $3.40 X 42 shares
= $142.80
or about a 14.3% net gain on a $992.46 investment.
Therefore, Natural Health Trends Corporation whose trading ticker symbol is NHTC, now shows a possible 14.3% net gain including a 6.7% dividend yield.
One broker covers this stock:
She says NHTC is a stock to "hold".
Thus, the analyst recommendation number is 3.0 or "hold".
The price target set by that prescient broker is $4.33 over my half-recovering estimate of $25.67 price target for NHTC.
So, you could look at all these speculative numbers this way, Natural Health Trends Corporation, whose trading ticker symbol is NHTC, has made money, is making money, and could net a 14.3% net annual gain including a 6.7% 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 Natural Health Trends Corporation is worth your time and money.
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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