Six Flags Has 20 Parks And Plans To Grow

This week I'm seeking a prestigious and long-term dividend-paying stock from the consumer cyclical sector. 

That cyclicals sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Plastics, Textiles, and all such consumer aimed enterprises.

Today I'm reviewing a mid-cap leisure firm named Six Flags Entertainment Corp. Its trading ticker symbol is SIX

Six Flags Entertainment Corp is the owner and operator of regional theme and water parks in the United States, Mexico and Canada. It offers thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues and retail outlets.

It owns and operates 20 parks, including 17 parks in the United States; 2 parks in Mexico; and 1 park in Montreal, Canada. 

The company was formerly known as Six Flags, Inc. and changed its name to Six Flags Entertainment Corporation in April 2010. Six Flags Entertainment Corporation was founded in 1961 and is based in Grand Prairie, Texas.

I use three key data points to gauge the value of any dividend equity or fund like Six Flags Entertainment Corp.(SIX): 

(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. 

SIX Price

SIX's price per share was $67.91 at yesterday's market close. A year ago its price was $56.75 for a gain of $11.16 per share.  

Assuming Six Flags' price will trade in the range of $55 to $80 next year, Six Flags' current $67.91 price could repeat the gain and grow to $79.07 by mid-September, 2019. 

SIX Dividends

SIX's most recent quarterly dividend was $0.78 declared August 16th and paid September 10th. That dividend was increased from $0.70 last March.

At this most recent $0.78 quarterly pay rate, Six Flags' annual dividend is calculated at $3.12 yielding 4.6% at yesterday's closing $67.91 price.

Gains For SIX?

Adding the $3.12 estimated annual dividend to my $11.16 repeated annual price gain for Six Flags makes a $14.28gross annual per share gain, which is reduced by the cost to trade the shares.  

 A little over $1,000.00 invested today at the $67.91 recent price buys 15 Six Flags Entertainment Corp. (SIX) shares. 

A $10 broker fee paid half at purchase and half at sale costs $0.67 per share, subtracting that $0.67 brokerage cost from the estimated $14.28 gross gain leaves a net gain of $13.61 X 15 shares = $204.15 or a 20% net gain on a $1,018.65 investment.

Therefore, Six Flags Entertainment Corp., whose trading ticker symbol is SIX, now shows a possible 20% net gain including a 4.6% dividend yield. 

Eleven brokers cover this stock:

Seven say "buy" SIX.

None say GME will "outperform" its peers.

Three say SIX is a stock to "hold".

None say SIX will "underperform".

One says "sell' the stock.

Thus, the analyst consensus recommendation number is 1.9 or "outperform".

The median price target set by those eleven brokers is$5.57 under my year over year price $79.07 price target for SIX

So, you could look at all these various numbers this way, Six Flags Entertainment Corp., whose trading ticker symbol is SIX, has made money, is making money, and could net a 20% net annual gain including a 4.6% 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 Flags Entertainment Corp. (SIX) 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 solicitation, ...

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