New Report: Tyson Foods (TSN)

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Tyson Foods Inc, known by the ticker symbol TSN,  is a large-cap farm products company, operating in the consumer defensive business sector. This is my first report on TSN for this Viital portfolio or any of my previous six dog of the week portfolios.

It sells its products through its sales staff to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, chain restaurants or their distributors, live markets, international export companies, and domestic distributors, and other vendors, as well as through independent brokers and trading companies. 

Tyson Foods is the largest U.S. producer of processed chicken and beef. It’s also a large producer of processed pork and protein-based products under the brands Jimmy Dean, Hillshire Farm, Ball Park, Sara Lee, Aidells, State Fair, and Raised & Rooted, to name a few. 

Tyson sells 81% of its products through various U.S. channels, including retailers (47% in fiscal 2021), food service (32%), and other packaged food and industrial companies (10%). 

In addition, 11% of the company’s revenue comes from exports to Canada, Mexico, Brazil, Europe, China, and Japan.

The company was founded in 1935 and is headquartered in Springdale, Arkansas.

Three key data points gauge any dividend equity or fund such as Tyson Foods Inc (TSN):

(1) Price

(2) Dividends

(3) Returns

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

TSN Price

Tyson's price per share was $90.39 as of yesterday's market close. One year ago its price was $68.19. Therefore Tyson's share price increased $22.20 or 32.56% in the past year.

If Tyson's stock trades in the range of $70.00 to $120.00 this next year, its recent $90.39 share price might rise by $9.61 to reach $100.00 by February 24, 2023. This estimate is  $1.85 below the median of target prices estimated by 13 analysts covering Tyson for their brokerages.

TSN Dividends

Tyson's most recent quarterly dividend of $0.46 is payable March 15th, to shareholders on record as of February 28th.  The TSN  Annual estimated dividend payout per share of $1.84 yields 2.04% per yesterday's $90.39. closing price. 

Tyson has paid regular quarterly dividend payouts generally increasing annually since December, 1994. That stretch will mark 28 years come December 15.

TSN Returns

Adding the $1.84 annual Tyson forward-looking dividend to its estimated one-year price upside of $9.61 shows a $11.45 potential gross gain, per share, to be reduced by any costs to trade TSN shares.  

At yesterday's $90.39 price per share, a little under $1000 would buy 11 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us  $0.91 per share.

Subtract that maybe $0.91 brokerage cost from my estimated $11.45 gross gain estimate per share results in a net gain of $10.54 X 11 shares = $115.94 for a 11.6% net gain on a $994.29 investment.

So it is that Tyson Foods Inc (TSN) shows a possible 11.6% net gain including a 2.04% forward estimated dividend yield. 

Over the next year at this time our $1000 investment in Tyson Foods Inc (TSN) could generate $20.40 in cash dividends alone. Note that a single share of TSN stock bought at yesterday's share price of $90.39 is over 4 times greater than the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is a terrible time to pickup Tyson Foods Inc (TSN) shares. The estimated next-year dividend from $1K invested is 4.43 times LESS than yesterday's single share price of TSN. Consider yourself alerted. Its a sign!  Wait for Tyson's share price to drop to $42.90

All of the estimates above are speculation based on the past history of Tyson Foods Inc (TSN). 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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