UPM-Kymmene Flaunts Wood Fibers

The basic sector has thirteen industries all related to mining, making and delivering essential commodities. They are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; paper; gold; silver; specialty chemicals; steel.

Today I'm reviewing a paper and forest products company. It's a large-cap stock, UPM-Kymmene Oyj. It's trading ticker symbol is UPMKY

UPM-Kymmene Oyj manufactures paper and forest products. The company produces paper, with an emphasis on the manufacture and sale of printing and writing papers.

Further, it provides plywood and veneer products for construction, vehicle flooring, LNG shipbuilding, and other manufacturing industries. 

The company was founded in 1995 and is headquartered in Helsinki, Finland.

Three key data points measure dividend equities or funds like UPM-Kymmene Oyj: 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money. 

UPMKY Price

UPM-Kymmene's price at yesterday's market close was $35.88 per share. A year ago its price was $24.87. That is a gain of $11.01 per share in the past year.  

Assuming UPM-Kymmene's price gains at the same pace this year, its price would grow from $35.88 to $46.89 by late March 2019.

UPMKY Dividends

UPM-Kymmene's most recent annual dividend was $1.43 declared in February, and payable April 26, 2018. 

The UPM-Kymmene estimated annual dividend for 2018 is estimated at $1.43 payable in April.

The yield from that $1.43 annual dividend is 3.98% at yesterday's $35.88 share price. 

Gains For UPMKY?

Adding the $1.43 annual dividend to the $11.01 estimated price gain makes a $12.44 projected gross annual gain, which must cover any cost to trade those shares.  

Say $1,000.00 was invested at yesterday's $35.88 price. That trade bought 28 shares. 

A $10 broker fee paid as $5 at purchase and $5 at sale of the shares equals about $0.36 in cost per share

Subtracting that $0.36 brokerage cost from the estimated $12.44 gross gain leaves a net gain to next year of $12.08 X 28 shares 

= $338.24

or a 34% net gain on a $1,004.64 investment.

Therefore, UPM-Kymmene Oyj (whose ticker symbol is UPMKY), now shows a possible 34% net gain including a nearly 4% dividend yield. 

NO analysts cover this stock. However, its past 15-year price history shows a rise and fall into the 2009 recession with a fairly steady climb thereafter. A peak $26 price was reached in March 2007 then dropped 73% to a low of $7.00 as of March 2009 from which it recovered 419% to $36.32 as of last week.

Those forward-looking numbers were conjecture based on past year performance. The actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if UPM-Kymmene Oyj is worth your time and money.

Disclaimer: For more information and to get a two-week free sample of my stock portfolios just click on this link. Click ...

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