Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.

This week my Safari portfolio seeks a company in the basic materials sector.

That sector has companies that mine or manufacture basic commodities, specifically: agricultural inputs, aluminum; building materials, chemicals, coal, copper, gold, industrial metals, lumber & wood, paper, silver, specialty chemicals, and steel. 

Today I'm reviewing an industrial metals and minerals firm named Vendanta Limited. Its trading ticker symbol is VEDL. 

Vendanta Limited is a natural resource company engaged iron ore mining, non-ferrous metals (copper and aluminum production) and commercial power generation.

The company was formerly known as Sesa Sterlite Limited and changed its name to Vedanta Limited in March, 2015. It was incorporated in 1965 and is based in Mumbai, India. Vedanta Limited is a subsidiary of Vedanta Resources Plc.

I use three primary keys to gauge dividend equities or funds like Vendanta Limited (VEDL): 

(1) Price

(2) Dividends

(3) Returns

The first three keys, though, best test whether a company has made, is making and will make money. 

VEDL Price

Vendanta Limited's price at Tuesday's market close was $21.39 per share. The company did make money. One year ago its price was $15.15. So it's a gained  $6.24 per share in the past year.  If VEDL does as well in 2018 its price will increase from $21.39 to $27.63 per share or about 29 %.

VEDL Dividends

Vendanta Limited's most recent annual dividend was $1.09 declared in March, and paid in April 12th.  

The company paid annual dividends from 2008 to 2010 then semiannual from 2011-15. It's back tp annual dividends since 2016

VEDL's annual dividend for 2018 is estimated as $1.20 payable in April.

The yield from a $1.20 dividend would be 4.3% at next years guesstimated $27.63 price

Gains For VEDL?

Adding the $1.20 dividend to my $6.24 estimated year over year price gain shows a potential $7.44 gross gain for the coming year.  

But there are costs to trade Vendanta Limited shares. A  $1,000.00 budget for shares at Tuesday's $21.39 closing price would let us purchase 47 shares. 

Those 47 shares will be hit with a broker fee of $5 at purchase and another $5 at sale for a brokerage cost of about $0.21 per share

Subtracting that $0.21 brokerage cost from the estimated $7.44 gross gain shows a net gain to 2019 of $7.23 X 47 shares = $339.81 or about a 34% net gain on our $1,005.33 investment.

Therefore, Vendanta Limited (whose ticker symbol is VEDL), shows a possible 39% gain by my simple year over year calculation with a 4.3% dividend baked in. 

No analysts cover this stock but its price trajectory over the past ten years has been downward.

These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen. They could turn out to move lower. More study is required for you to determine if Vendanta Limited (VEDL) is worth your time and money.