Stock Analysis: Orkla

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Orkla ASA (ORKLY) is a branded consumer goods company, originally from Norway.

Its segments include Orkla Foods Europe, Orkla Food Ingredients, Orkla Confectionery & Snacks, Orkla Health, Orkla India, Orkla Home & Personal Care, The European Pizza, Orkla House Care, Health and Sports Nutrition Group, Pierre Robert Group, and Lilleborg.

It still generates the majority of its revenue from Norway.

However, It also has operations in Sweden, Denmark, Finland, Iceland, the Baltics, the rest of Europe, and internationally.

The company was founded in 1918 and is headquartered in Oslo, Norway.

Three key data points gauge Orkla or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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


ORKLY Price

Over the past year, Orklas share price rose about 0.5% from $7.085 to $7.12 as of Tuesday’s market close.

If Orkla shares trade in the range of $6.50 to $8.50 this next year, its recent $7.12 share price might rise to $7.50 by next year. Of course, Orkla’s price could drop about the same $0.38 estimated amount, or more.

My annual upside estimate of $0.38 however, is in line with the historic seasonal price swings for ORKLY shares.


ORKLY Dividend

Orkla ASA has paid variable annual dividends since May 2006. Orkla’s most recent A dividend of $0.56 was declared on March 22nd for shareholders of record on April 19th and the payout is due May 13th. There’s little time left to capture the 2024 dividend

The forward-looking $0.56 annual dividend yields 7.87% at Tuesday’s $7.12 share price.


ORKLY Returns

To put it all together, add the Orkla estimated annual dividend of $0.56 to the estimated price upside of $0.38 to find a $0.94 estimated gross gain for the coming year.

At Tuesday’s $7.12 price, a little under $1000 would buy 140 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.07 per share.

Subtracting that likely $0.07 brokerage cost from the $0.94 gross gain reveals a net gain of $0.87 X 140 shares = $121.80 for a 12.2% estimated net gain on the year.

You might choose to pounce on Orkla ASA It is a 106-year-old dividend-paying Oslo-based branded consumer goods company. Furthermore, the estimated $78.70 annual dividend income from $1k invested just over 11 times greater than Orkla’s recent $7.12 share price.

The exact track of Orklas ongoing future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


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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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