Stock Analysis: Sumitomo Forestry

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Founded in 1691 and headquartered in Chiyoda-ku, Japan, Sumitomo Forestry Co Ltd (SMFRF) engages in the timber building materials, housing, overseas housing, construction, real estate, and resources and environment businesses in Japan, the United States, Australia, China, Indonesia, New Zealand, and internationally.

Sumitomo Forestry operates timber and exporting businesses in Southeast Asia, Australia, and North America. It is also involved in forestry management, as it owns forests around Japan and Southeast Asia.

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

(1) Price

(2) Dividends

(3) Returns

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


SMFRF Price

Sumitomo’s price fell about 11% over the past year from $34.99 to $31.17 as of Thursday’s closing price.


SMFRF Dividends

Sumitomo has paid variable semi-annual dividends since June 2014. The current forward looking annual dividend of $1.22 yields 3.90% per Thursday’s $31.17closing price.


SMFRF Returns

Putting it all together, a $5.95 estimated gross gain per share shows up when adding Sumitomo’s annual $1.22 dividend to an estimated $4.73 analyst estimated annual price gain, totaling that $5.95 gross gain.

A little under $1000 invested at the recent $31.17 price would buy 32 shares which, multiplies the $5.95 gross gain to $190.40.

Furthermore almost 20% of that $190 gain comes from the $39.00 in dividends generated from a $1,000 investment, and the $39.00 amounts to nearly $7.83 more than the recent $22.71 single-share price.

(A dividend dogcatcher rule is to never buy a stock that pays an annual dividend from $1000 invested that is lower than the cost of a single share.)

Therefore, you may choose to pounce on Sumitomoi and its 3.9% dividend yield along with its 11 year dividend record.

The exact track of SMFRF future prices 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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