Thursday, January 12, 2023 11:08 PM EST
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Spark New Zealand Ltd bears the ticker symbol SPKKY, and this is my first mention of SPKKY for my new Viking Portfolio. I have however reported on it for a couple of my previous Dog of The Week Portfolios.
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Spark is one of only two large integrated telecommunications companies in New Zealand.
It is, however, the dominant provider of fixed-line services in the country and effectively an equal-number-one player in the mobile telephony market. It also has a commanding presence in the New Zealand corporate and wholesale telecommunications services provision space.
Spark's operations are split into mobile, voice, broadband, and digital-related services
It serves consumers, households, small businesses, the government, and large enterprises.
The company was formerly known as Telecom Corporation of New Zealand Limited and changed its name to Spark New Zealand Limited in August 2014.
Spark New Zealand Limited was incorporated in 1987 and is headquartered in Auckland, New Zealand.
Three key data points gauge
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Spark New Zealand Ltd:
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(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
SPKKY Price
Spark’s price per share was $16.75 at Thursday’s market close. In the past year, Spark’s share price increased by $1.51 or about 10%.
If Spark’s stock trades in the range of $13.50 to $20.50 this next year, its recent $16.75 share price might reach to $19.00 by next year. That upside estimate of $2.25 is about $0.70 below the one-year target estimate from the analyst covering SPKKY for brokers.
SPKKY Dividends
Spark’s most recent Semi-Annual dividend of $0.4134 equates to $0.83 annually and casts a forward yield of 4.94%.
SPKKY Returns
Adding the $0.83 annual estimated SPKKY dividend to my one-year price upside estimate of $2.25 reveals a $3.08 potential gross gain per share.
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At Wednesday’s $16.75 closing price, a little over $1000 would buy 60 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.17 per share.
Subtract that maybe $0.17 brokerage cost from my estimated $3.08 gross gain makes a net gain of $2.91 X 60 shares = $174.60 for a 17.45% net gain including a 4.94% annual dividend yield.
In the next year, our $1K investment in shares of Spark New Zealand Ltd would generate $49.40 in cash dividends. Of course, a single share of Spark stock at Wednesday's $16.75 price is about 3 times less than the estimated annual dividend income from our $1000.00 investment.
So, by my dogcatcher ideal, this looks like a good time to buy SPKKY shares based on their dividends for 2023. The current dividend from $1K invested is about 2.95 times greater than the SPKKY single share price. Consider yourself alerted.
All of the estimates above are speculation based on the past history of investment in shares of Spark New Zealand Ltd. Only time and money invested in this stock will determine its future market value.
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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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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, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.
Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts.
Catch Your Underdog Daily Dividend on Facebook!
The night before every NYSE trading day on Facebook/ Dividend Dog Catcher Fredrik Arnold usually does a quick live video summary of one stock contending for a weekly slot on his new Viking portfolio.
Last night Arnold followed this script on his Underdog Daily Dividend Show!
Always remember: Root for the Underdog.
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