New Report: MDU Resources Group (MDU)

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MDU Resources Group Inc, known by the ticker symbol MDU,  is a mid-cap conglomerate, operating in the industrials business sector. This is my first report on MDU Inc for this Viital portfolio or any of my previous six portfolios.

MDU Resources Group Inc operates in five business segments, which include: 

Electric segment, which generates, transmits, and distributes electricity in Montana, North Dakota, South Dakota, and Wyoming; 

The natural gas distribution segment distributes natural gas in those states, as well as in Idaho, Minnesota, Oregon and Washington; 

The pipeline segment provides natural gas transportation and underground storage services through a regulated pipeline system primarily in the Rocky Mountain and northern Great Plains regions of the United States; 

The construction materials and contracting segment mines, processes and sells construction aggregates (crushed stone, sand, and gravel); produces and sells asphalt mix, and supplies ready-mixed concrete; 

The construction services segment serves manufacturing, commercial, industrial, transportation, institutional, and renewable and government customers, as well as utilities. 

The company was founded in 1924 and is headquartered in Bismarck, North Dakota.

MDU Dividends

Three key data points gauge any dividend equity or fund such as MDU Resources Group Inc (MDU):

(1) Price

(2) Dividends

(3) Returns

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

MDU Price

MDU's price per share of $25.45 as of yesterday's market close. One year ago its price was $31.47. Therefore, MDU's share price fell $6.02 or over 19% in the past year. 

If MDU's stock trades in the range of $24.00 to $40.00 this next year, its recent $25.45 share price might rise by $6.55 to reach $32.00 by March 15, 2023. My $6.55 estimate is  $4.25 below the median of target price estimates from 4 analysts tracking MDU for brokerages.

MDU Resources Group Inc's most recently declared quarterly dividend of $0.2175 per share is payable April 1st, to shareholders on record as of March 9th.  The MDU Annual estimated dividend payout per share of $0.87 yields 3.42% per yesterday's $25.45 closing price. 

MDU Resources Group Inc has paid  quarterly dividend payouts, since October 1, 1982. That stretch will mark 40 years come October.

TRN Returns

Adding the $0.87 annual MDU forward-looking dividend to the estimated one-year price upside of $6.55 shows a $7.42 potential gross gain, per share, to be reduced by any costs to trade MDU Resources Group Inc shares.  

At yesterday's $25.45 price per share, a little under $1000 would buy 39 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.26 per share.

Subtract that maybe $0.26 brokerage cost from my estimated $7.42 gross gain estimate per share results in a net gain of $7.16 X 39 shares = $279.24 for a 27.92% net gain on a $992.55 investment.

So it is that MDU Resources Group Inc  (MDU) shows a possible 27.92% net gain including a 3.42% forward estimated dividend yield. 

Over the next year at this time our $1000 investment in MDU Resources Group Inc could generate $34.20 in cash dividends alone. Note that a single share of MDU stock bought at yesterday's single share price of $25.45 is $8.75 less than the dividend income from our $1000.00 invested. So, by my dogcatcher ideal, now IS the time to buy MDU Resources Group Inc shares. The estimated next-year dividend from $1K invested is $8.75 greater than yesterday's single share price. Consider yourself alerted. Its a sign!  Now IS the time! 

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

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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