Daily Stock Pick: Ryder System (R)

This week, I'm looking for the sixth industrials representative of eight for my Ivy portfolio. That industrials sector includes twenty-three industries all related to designing, fabricating and servicing stuff we want and use. The industrials range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between.

Today I'm reviewing a mid-cap rental & leasing services company named Ryder System Inc. Their trading ticker symbol is R. I last reported on this firm October 25, 2018.

Ryder System Inc is a provider of supply chain and fleet management solutions in the United States. It was founded in 1933 and is headquartered in Miami, Florida. The company offers fleet leasing, fleet maintenance, truck rental, dedicated transportation, transportation management, freight brokerage, supply-chain optimization, warehouse and distribution, and small-business solutions.

Ryder serves the automotive, consumer packaged goods, energy, food and beverage, healthcare, industrial manufacturing, metals, retail, technology and electronics, and transportation and logistics industries.

I use three key data points to gauge dividend paying equities or funds like Ryder System Inc (R):

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest. Those three basic keys, however, best tell whether a company has made, is making, and will make money.

R Price

Ryder's price per share closed at $54.78 yesterday. A year ago its price was $75.19. Price fell $20.41 or 27.14% in the past year.

Assuming Ryder's stock trades in the range of $45.00 to $65.00 this year, Ryder's recent $54.78 price could rise by $5.22 and go to $60.00 by early July, 2020.

R Dividends

Ryder's most recent quarterly dividend is $0.54 paid, June 21st.

That $0.54 Q payout equates to an annual dividend of $2.16 which produces a yield of 3.94% based on yesterday's $54.78 closing price.

Gains For R?

Adding the $2.16 annual estimated dividend to my $5.22 estimate of

Ryder's price upside shows a $7.38 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we pay a little under $1,000.00 today at the $54.78 recent stock price would buy 18 Ryder System Inc (R) equities.

A $10 broker fee paid half at purchase and half at sale will cost us $0.56 per share.

Subtract that $0.56 brokerage cost from the estimated $7.38 gross annual gain leaves a net gain of $6.82 X 18 shares = $122.76 or a 12.3% net gain on a $986.04 investment.

Therefore, Ryder System Inc whose trading ticker symbol is R, now shows a possible net gain of 12.3% including a 3.94% dividend yield.

Twelve brokers track Ryder System Inc (R) stock:

  • Eight brokers say "Buy" R.
  • Three brokers say "Hold" your R shares.
  • One broker says R will "Underperform" peers.
  • Their consensus score of 1.75 equates to "outperform."

Now we can look at Ryder System Inc (R) and see it has made money, is making money, and could net an 12.3% gain including a 3.94% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to determine if Ryder System Inc (R) is worth your time and money.


 

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