Cogent Communications Holdings Inc has the ticker symbol CCOI and is a member of the Communication Services sector as a telecom services company. This is my third report on Cogent Communications Holdings Inc for my Vista Portfolio. My most recent past report was on January 28th.
- Cogent carries over one fifth of the world's Internet traffic over its network and is an Internet service provider for businesses.
- Cogent's corporate customers are in high-rise office buildings, and the firm provides them with two types of connections: dedicated Internet access, which connects them to the Internet, and virtual private networking, which offers an internal network for employees in different locations.
- Cogent's corporate customers are exclusively in North America and account for two thirds of the firm's revenue. Cogent's netcentric customers include Internet service providers and content providers, to which Cogent provides Internet transit. They hand traffic to Cogent in data centers and rely on Cogent to deliver it. About half of netcentric revenue is from outside the U.S.
- Cogent Communications Holdings, Inc. was founded in 1999 and is headquartered in Washington, the District of Columbia.
Three key data points gauge dividend equities or funds like Cogent Communications Holdings Inc (CCOI):
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
CCOI Price
Cogent Communications Holdings Inc price per share closed at $64.40 Friday. One year ago its price was $75.95. Price per share has dropped over 15% from the depths of the Covid market slump.
If Cogent Communications Holdings Inc's stock trades in the range of $60 to $70 this year, its recent $64.40 price might rise by $1.60 to reach $68.00 by March 22, 2022. My estimate is inline with that of ten analysts tracking CCOI .
CCOI Dividends
Cogent Communications Holdings Inc's most recent declared quarterly dividend was $0.755 payable March 26th (Friday). Dividends are estimated to total $3.02 per share annually and yield 4.691% at yesterday's $64.40 closing price. It has paid annually increasing dividends for ten years.
CCOI Returns
Adding the $3.02 annual CCOI anticipated dividend to my $1.60 price upside shows a $4.62 potential gross gain, per share, to be reduced by any costs to trade the shares.
Put little over $1,000.00 today in Cogent Communications Holdings Inc at $64.40 per share and we'd buy 16 shares of CCOI stock.
A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.63 per share.
Subtract that maybe $0.63 brokerage cost from my estimated $4.62 gross gain per share results in a net gain of $3.99 X 16 shares = $63.84 for a 6.35% net gain on a $1,030.40 investment.
Cogent Communications Holdings Inc (CCOI) shows a possible 6.35% net gain including a 4.69% dividend yield.
Over the next year at this time a $1000 investment in CCOI could generate $46.00 in cash dividends. And a single share bought at yesterday's closing price was about $64! So, if CCOI is your kind of communication services investment, their price is way above the annual dividend income from $1,000 invested. This augurs that you wait for CCOI price to drop below $55 before adding these shares to your portfolio.
All of the estimates above are speculation based on the past history of Cogent Communications Holdings Inc (CCOI). Only time and money invested in this stock will determine its worth.
