Daily Stock Analysis: Suburban Propane

Suburban Propane Partners LP bears the ticker symbol (SPH), and this is my first mention of SPH for this new Viking Portfolio. However I did choose it for one of my previous seven dog of the week folios.

Image: Suburban Propane

Suburban Propane Partners distributes propane, fuel oil, and other refined fuels to customers primarily in the East Coast and West Coast regions of the United States.

The company operates through four segments: Propane, Fuel Oil and Refined Fuels, Natural Gas and Electricity, and All Other.

Operations include natural gas and electricity marketing in the deregulated New York and Pennsylvania markets.

As of September 24, 2022, the company served approximately 1.0 million residential, commercial, industrial, and agricultural customers through 700 locations in 42 states.

Suburban Energy Services Group LLC serves as a general partner of Suburban Propane Partners, L.P.

The company was founded in 1945 and is based in Whippany, New Jersey.

Three key data points gauge Suburban Propane Partners, or any dividend-paying firm. They are:

(1) Price

(2) Dividends

(3) Returns

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

SPH Price

Suburban’s price per share was $15.02 at Monday’s market close. In the past year, SPH share price fell $1.28 or about 8%.

If SPH stock trades in the range of $13.00 to $20.00 this next year, its recent $15.02 share price might reach $17.00 by next year. My upside estimate of $1.98 is based on the median of one year price estimates from 2 analysts covering Suburban Propane Partners for brokers.

SPH Dividend

Suburban Propane Partners’ most recent forward looking annual dividend of $1.31 casts an annual yield of 8.72%.

SPH Returns

Adding the $1.31 annual estimated

SPH dividend to my estimated $1.98 price upside, reveals a $3.29 potential gross gain estimate per share.

At Monday’s $15.02 closing price, a little over $1000 would buy 67 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.15 per share.

Subtract that maybe $0.15 brokerage cost from my estimated $3.29 gross gain makes a net gain of $3.14 X 67 shares = $210.38 or a 21% net gain including an 8.72% annual dividend yield.

In the next year our $1K investment in shares of SPH should generate $87.20 in cash dividends. Furthermore, a single share of SPH at Friday’s $15.02 price near 6 times less than the $87.20 estimated annual dividend income from a $1000.00 investment.

So, by my dogcatcher ideal, this is a proper time to consider SPH shares, based on their dividends for 2023. The current dividend from $1K invested is 5.8 times greater than the AES single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of Suburban Propane Partners LP. Only time and money invested in this stock will determine its future market value.

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