Daily Stock Analysis: Kontoor Brands, Fall Update

Kontoor Brands Inc with the ticker (KTB) is a mid-cap apparel manufacturing company operating in the consumer cyclical business sector. This is the fourth of five consumer cyclical candidates competing for the fiftieth slot in my Viital folio. It is my second report on KTB for my Viital portfolio. I last mentioned this company June 28.

Kontoor Brands Inc is a lifestyle apparel company. It is engaged in designing, manufacturing, sourcing, marketing, and distribution of its portfolio of brands, including Wrangler and Lee.

It manufactures its products in owned and leased facilities and distributes the products through both brick and mortar and e-commerce retailers. It generates the majority of its revenue from the Wrangler segment.

The company's geographical segments are the United States and International, of which most of its revenue comes from the United States.

The company sells its products primarily through mass merchants, specialty stores, mid-tier and traditional department stores, company-operated stores and online.

As of January 1, 2022, it operated 80 retail stores across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions.

The company was incorporated in 2018 and is headquartered in Greensboro, North Carolina.

Three key data points gauge any dividend equity or fund, such as Kontoor Brands Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

KTB Price

Kontoor’s price per share was $36.15 after yesterday’s market close.  One year ago its price was $54.00. So, KTf’s share price fell by $17.85 or about 33% in the past year.

If Kontoor’s stock trades in the range of $30.00 to $50.00 this next year, its recent $36.15 share price might rise by $4.85 to reach $41.00 by next year. My $4.85 upside estimate is $2.38  under the median of annual price target upsides projected by 8 analysts tracking KTB stock price for brokers.

KTB Dividends

Kontoor’s most recently declared quarterly dividend of $0.48 is payable September 19th to shareholders on record as of September 8th.

Since September, 2019 Kontoor has paid quarterly variable dividends. The current forward-looking annual dividend of $1.84 casts an annual yield 5.09% as of yesterday’s $36.15 share price.

KTB Returns

Adding the $1.84 Kontoor annual dividend to my estimated one-year price upside estimate of $4.85 shows a $6.69 potential gross gain, per share, to be reduced by any costs to trade KTB shares.

At yesterday's $36.15 closing price, a little under $1000 would buy 28 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.36 per share.

Subtract that maybe $0.36 brokerage cost from my estimated $6.69 gross gain estimate per share results in a net gain of $6.33 X 28 shares = $177.24 for a 17.7% net gain including a 5.09% forward-looking annual dividend yield.

Over the next year our $1K investment in Kontoor Brands Inc shares could generate $50.90 in cash dividends. Of course, a single share KTB stock bought at yesterday's $36.15 price is nearly $14.75 less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a positive time to acquire KTB shares based on their forward looking dividends for the year 2022. The forecast annual dividend from $1K invested is about 41% greater than yesterday’s single share price. Consider yourself alerted. Now is the time.

All of the estimates above are speculation based on the past history of Kontoor Brands Inc. Only time and money invested in this stock will determine its market value.

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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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