Stock Analysis: Star Group

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Incorporated in 1995 and is based in Stamford, Connecticut. Star Group (SGU), L.P., together with its subsidiaries, provides home heating oil and propane products and services to residential and commercial customers in the United States. 

 It also offers gasoline and diesel fuel; as well as installs, maintains, and repairs heating and air conditioning equipment.

Three key data points gauge Star or any dividend paying entity, namely:

(1) Price

(2) Dividends

(3) Returns

Those keys also indicate if any company has made, is making, and will make money.


SGU Price

Star share price fell about 2.5%from $12.10 to $11.80 over the past year per Thursday’s market price.

One analyst covers the stock.

However , the average annual price gain in Star shares was $1.24 over the past three years.


SGU Dividends

Star has paid quarterly dividends since May 15, 1996. The current forward looking annual $0.74 dividend yields 6.27% per Thursday’s $11.80 share price.

The next $0.185 quarterly dividend will likely pay out around November 7th to Shareholders of record before October 20th.


SGU Returns

Putting it all together, a $1.44 estimated gross gain per share shows up when adding Star’s annual $0.74 dividendto just a portion the estimated $1.24 average annual price gain over the past three years; an amount of $0.70.

A little over $1000 invested at the recent $11.80 share price would buy85 shares which, multiply the $1.44 estimated gross gain to $122.03 for the coming year.

About half of that $122 gain comes from the $62.70 of annual dividends generated from your $1,000 investment. Besides, the $62.70 annual dividend income from your $1k investment is over 5 times greater than the recent $11.80 single-share price.

(A dividend dogcatcher rule is to only buy initial shares of a stock that pay an annual dividend from $1000 invested that is greater than the cost of a single share.)

Therefore, you may choose to pounce on Star Group LP to get that current $62.70 annual dividend income that has been paid out over the past nearing 30 years.

The exact track of Star’s future share price and dividends will entirely be determined by market action and company finances.

Remember the best way to track stock performance and dividend payments is through direct ownership of company 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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