Deluxe Corp, known by the ticker symbol DLX is a small-cap (<$1M) advertising agency, operating in the communication services business sector. This is my first-ever report on DLX for this Viital portfolio or any of my previous 6 portfolios.

Deluxe is a provider of customer life-cycle management solutions to small businesses and financial institutions. The company was formerly known as Deluxe Check Printers, Incorporated and changed its name to Deluxe Corporation in 1988. It offers checks and check-related products, logo and web design, hosting and web services, search engine optimization, marketing programs, digital printing services, printed forms such as deposit tickets and invoices, and office supplies. The small business services segment operates under the Deluxe, NEBS, Safeguard, PsPrint, Hostopia, Logo Mojo, Aplus.net, OrangeSoda, and VerticalResponse brands. The company, which was founded in 1915 and is headquartered in Shoreview, Minnesota,  operates primarily in North America.

Three key data points gauge any dividend equity or fund such as Deluxe Corp (DLX).

(1) Price (2) Dividends (3) Returns. 

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

DLX Price

Deluxe’s price per share was $22.54 as of yesterday's market close. One year ago its price was $47.95. Therefore, Deluxe’s share price fell $25.41 or about 53% in the past year.

If Deluxe’s stock trades in the range of $8.00 to $40.00 this next year, its recent $22.54 share price might rise by $7.46 to reach $30.00 by June 9, 2023. My $7.46 upside estimate is $3.04 under the median of annual price increases calculated two analysts covering DLX for broker firms.

DLX Dividends

Deluxe’s most recently declared quarterly dividend of $0.30 was paid June 6, 2022 to shareholders on record as of May 20th.

DLX initiated their first semi-annual dividend  at $0.13 as of March 3, 1986. The dividend was increased to $0.30 in May, 2014. That current quarterly payout equates to $1.20 annually and that annual payout is calculated to deliver a 5.32% annual yield per yesterday’s $22.54 share price.

DLX Returns

Adding the $1.20 DLX annual dividend to my estimated one-year price upside estimate of $7.46 shows a $8.66 potential gross gain, per share, to be reduced by any costs to trade DLX shares.

At yesterday's $22.54 closing price per share, a little under $1000 would buy 44 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.23 per share.

Subtract that maybe $0.23 brokerage cost from my estimated $8.66 gross gain estimate per share results in a net gain of $8.43 X 44 shares = $370.92 for a 37.10% net gain including a 5.32% forward looking dividend yield.

So it is that Deluxe Corp shows a possible 37.42% net gain including a 5.32% forward-looking dividend yield.

Over the next year at this time our $1000 investment in Deluxe Corp. shares might generate $53.20 in cash dividends. Of course, a single share of DLX stock bought at yesterday's $22.54 price is over 2 times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a good time to pick up Deluxe Corp shares based on their forward looking dividends for the year 2022. The forthcoming annual dividends from $1K invested are 2.36 times greater than yesterday's single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Deluxe Corp  (DLX). Only time and money invested in this stock will determine its market value.