Stock Analysis: Village Supermarket
Image Source: Unsplash
Village Super Market Inc (VLGEA) operates a chain of ShopRite supermarkets, a few of which are in northern New Jersey, southern New Jersey, Maryland, and in northeastern Pennsylvania. The company is a member of Wakefern Food Corporation (Wakefern), a retailer-owned food cooperative and owner of the ShopRite name. It consists of one operating segment, the retail sale of food and nonfood products.
The company was founded in 1937 and is based in Springfield, New Jersey.
Three key data points gauge Village Super Market Inc or any dividend paying firm.
The key three are:
(1) Price
(2) Dividends
(3) Returns
Those three keys also best tell whether any company has made, is making, and will make money.
VLGEA Price
Share price increased 28.7% over the past year from $24.94 to $32.10, as of Wednesday’s market close.
In the past 3 years the company’s share price has rarely been less than $19.00 nor more than $37.95. Its all-time high price of $39.71 was reached in November, 2013.
If shares trade in the range of $25.00 to $35.00 this next year, the recent $32.10 share price might grow to $33.75. Of course, VLGEA shares could also drop about the same $1.65 estimated amount, or more.
My $1.65 price upside estimate is based on the average VLGEA annual price gains of the past four years.
VLGEA Dividend
Village Super Market Inc has paid variable quarterly dividends since March 1985. The company’s most recent Q dividend of $0.25 was declared December 13th to shareholders of record prior to January 2nd, 2025.The dividend is payable January 23rd. A forward looking annual dividend of $1.00 yields 3.12% per Wednesday’s closing price.
VLGEA Returns
Putting it all together, a $2.65 estimated annual gross gain per share shows up by adding
Village Super Market’s annual $1.00 dividend to the estimated price upside of $1.65, totals that $2.65 gross gain.
A little over $1000 buys 31 shares at Wednesday’s $32.10 share price.
A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.32 per share out of the $2.65 gross-gain to give us a net gain of $2.33 X 31 shares = $72.23 for about a 7.25% estimated net gain on the year.
However, the $31.20 annual estimated dividend income from $1k invested in VLGEA is $2.55 under the $32.10 single-share price. By these numbers, VLGEA will no be be an ideal consumer staple dividend dog until its price drops to $31.50.
Therefore, you should wait to pounce on Village Super Market Inc.
It is a soon to be 88 year-old variable quarterly dividend paying supermarket concern with an 40 yeardividend record.
The exact track of Village Super Market Inc future price and dividend will entirely be determined by market action and company finances.
Remember the best measure of stock value is through direct ownership of shares.
More By This Author:
Current Report: Mitsubishi Shokuhin
Current Report: Universal Corp
Current Report: Adecoagro
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, ...
more