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 the portfolio I'm building (my Safari To Sweet Success portfolio) seeks a high-yield and growing stock in the consumer cyclical sector. 

The consumer cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Footwear, Gambling, Leisure, Lodging, Packaging, Personal Services, Restaurants, Rubber, Plastics, & Textiles, and all such consumer aimed enterprises.

Today I'm reviewing a Mid-Cap International packaging and containers corporation. The company's name is Graphic Packaging Holding Company. It's trading ticker symbol is GPK.  

 

The company provides paper-based packaging solutions to food, beverage and other consumer products companies. It is a producer of folding cartons in Europe, Americas and Asia Pacific. The company operates through three segments: Paperboard Mills, Americas Paperboard Packaging, and Europe Paperboard Packaging. 

The company markets its products primarily through sales offices and broker arrangements with third parties in the Americas, Europe, and the Asia Pacific.  Graphic Packaging Holding Company was founded in 1992 and is headquartered in Atlanta, Georgia.

I use three key data points gauge the value of any dividend equity or fund like Graphic Packaging Holding Company (GPK): 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest. 

No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money. 

GPK Price

Graphic Packaging's price was $15.04 per share at yesterday's market close. A year ago its price was $13.07 for a gain of $1.97 per share in the past year.  Assuming Graphic Packaging's price will continue to trade in the range of $12.00 to $18.00 next year, its price could grow another $1.97 from $15.04 to $17.01 by late- May, 2019. 

GPK Dividends

Graphic Packaging's most recently declared quarterly dividend was $0.075 per share declared in February, and paid in April.That $0.075 Q dividend equates to an annual payout of $0.30 for 2018 and yields 2% at yesterday's $15.04 closing stock price.

Gains For GPK?

The $1.97 estimated year over year price gain plus an anticipated dividend of$0.30 makes a projected gross annual gain of $2.27 per share, which will be reduced by the costs to trade those shares.  

$1,000.00 invested today at the $15.04 price buys 66 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts$0.15 per share.

Taking that $0.15 brokerage cost out of the estimated $2.27 gross gain per share leaves a net gain of $2.12 X 66 shares 

= $139.92

or a 14% potential net gain on a $992.64 investment.

Therefore, Graphic Packaging Holding Company (whose ticker symbol is GPK), now shows a possible 14% net gain including a 2% dividend yield. 

Thirteen analysts cover this stock:

• Seven say "buy."
• Three say GPK will "outperfom" the market. 
• Three say "hold."

The median analyst recommendation is 1.70 or outperform.

Y Charts also rates GPK "neutral" for an overall "Y" rating. Also Y Charts shows "Good" for a Value score of 8 out of ten points. And YCharts also ranks GPK "strong" with 7 out of 10possible Fundamental points. Y Charts also shows an Historic Valuation score as 6.07% undervalued, based on a $16.01 historic value multiple.

You could look at all those numbers like this: Graphic Packaging Holding Company (GPK) has made money, is making money, and could net a 14% net gain next year including2% dividend yield. It could be more, it could be less.

The above speculation is conjecture based on past year performance. Actual results remain to be seen.They could turn out to be far higher or lower. More study is required for you to determine if Graphic Packaging Holding Company (GPK) is worth your time and money.

For more information and to get a two-week free sample of my stock portfolios just click here.