New Report: News Corp (NWSA)

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News Corp,  known by the ticker symbol NWSA,  is a large-cap Broadcasting firm, operating in the communication services business sector. This is my first report on News Corp for this Viital portfolio.  I have not reported on NWSA for any of my previous portfolios.

News Corporation is a media conglomerate with large presence in the U.S, the U.K., and Australia. 

Key brands include The Wall Street Journal, Herald Sun, and The Times. The company also has a strong presence in the Australian pay-TV market through Fox Sports and Foxtel (both 65%-owned), while its 62%-owned REA Group is the dominant real estate classified business in Australia. 

In addition, it owns HarperCollins, one of the largest book publishers globally, and also has a substantial digital property advertising business (Move) in the U.S.

The company is headquartered in New York, New York.

NWSA Dividends

Three key data points gauge any dividend equity or fund such as News Corp (NWSA):

(1) Price

(2) Dividends

(3) Returns

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

NWSA Price

News Corp's price per share was $21.13 as of yesterday's market close. One year ago its price was $25.52 Therefore, News Corp's share price fell $4.39 or 17.2% in the past year. 

If NWSA's stock trades in the range of $20.00 to $30.00 this next year, its recent $21.13 share price might rise by $5.87 to reach $27.00 by March 10, 2023. My $27 estimate is  $3.76 below the median of one year target estimates from the eight analysts who track News Corp for brokerages.

News Corp's most recently declared quarterly dividend of $0.10 per share is payable April 13th, to shareholders on record as of March 15th.  The NWSA Annual estimated dividend payout per share of $0.40 yields 1.89% per yesterday's $21.13 closing price. 

News Corp has paid the same $0.10 quarterly dividend payouts, since October, 2015. That stretch will mark 7 years come October.

NWSA Returns

Adding the $0.40 annual News Corp forward-looking dividend to its estimated one-year price upside of $5.87 shows a $6.27 potential gross gain, per share, to be reduced by any costs to trade News Corp shares.  

At yesterday's $21.13 price per share, a little under $1000 would buy 47 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us  $0.21 per share.

Subtract that maybe $0.21 brokerage cost from my estimated $6.27 gross gain estimate per share results in a net gain of $6.06 X 47 shares = $284.82 for a 28.5% net gain on a $993.11 investment.

So it is that News Corp (NWSA) shows a possible 28.5% net gain including a 1.89% forward estimated dividend yield. 

Over the next year at this time our $1000 investment in News Corp  (NWSA) could generate $18.90 in cash dividends alone. Note that a single share of NWSA stock bought at yesterday's single share price of $21.13 is $2.23 higher than the dividend income from our $1000.00 invested. So, by my dogcatcher ideal, now is terrible time to buy News Corp (NWSA)  shares. The estimated next-year dividend from $1K invested is $2.23 less than yesterday's single share price of NWSA. Consider yourself alerted. Its a sign!  Now's not the time! Wait for NWSA shares to drop to $20.00!

All of the estimates above are speculation based on the past history of News Corp (NWSA). 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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