Atlas Copco For Productivity Solutions

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 my Safari portfolio seeks a high yield and price growing stock in the Industrials sector. That sector has twenty-three industries all busy designing, fabricating and servicing things we want and use from aerospace to waste management and all the business services and equipment required, in between.

Today I'm reviewing a diversified industrials firm. It's a large-cap stock with market capital of over $10 Billion. Atlas Copco AB. Its trading ticker symbol is ATLKY.

Atlas Copco makes and sells air compressors. Besides air compressors, Atlas also offers power tools, drilling and hauling equipment, vacuum pumps, and specialty rental services to supply its diverse customer base.

Atlas Copco AB provides industrial assembly solutions under the SCA, Henrob, and Atlas Copco brand names.

The company was founded in 1873 and is headquartered in Nacka, Sweden.

I use three key data points gauge the value of dividend equities or funds like Atlas Copco AB(ATLKY): 

(1) Price

(2) Dividends

(3) Returns

ATLKY Price

Atlas Copco's price was $41.99 per share at yesterday's market close.A year ago its price was $34.89 for a gain of$7.11 per share. 

Assuming Atlas Copco's price trades in the same range of $35 to $48 this year, its price could grow from $41.99 to maybe $49.10 by April, 2019. 

ATLKY Dividends

Atlas Copco's most recent semi-annual dividend was $0.87 declared in February, and payable May 9, 2018.

An annual estimated payout from its two semi-annual dividends is $1.73pegging its annual yield at 4.12% at yesterday's $41.99 share price. 

Gains For ATLKY?

Adding the $1.73 annual dividend to the $7.11 estimated year over year price gain makes an $8.84 projected gross annual gain, which is reduced by the cost to trade these shares. 

$1,000.00 invested today at the $41.99 price would buy 24 shares.

A $10 broker fee paid half at purchase and half at sale costs $0.42 per share Subtracting that $0.42 brokerage cost from the estimated $8.84 gross leaves a net gain of $8.42 X 24 shares = $202.08 or a 20% net gain on a $1,007.76 investment.

Therefore, Atlas Copco AB (whose ticker symbol is ATLKY), now shows a possible 20% net gain including a 4% dividend yield.

No analysts cover this stock. However, its past 15-year price history shows two peaks before and one after the 2009 recession. The latest was in mid-January 2018 from which the stock price declined 12% from $47.50 to its present $41.99 price.

Those forward-looking numbers were conjecture based on past year performance. The 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 Atlas Copco AB(ATLKY) is worth your time and money.

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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