CA, Inc. Means IT

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 technology sector. The technology sector includes nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health and information technology and services to internet, scientific instruments, software, solar and all such technological enterprises.

Today I'm reviewing a Large-Cap New York-based communication equipment firm that provides information technology software and solutions here and internationally. The company's name is CA, Inc., its trading ticker symbol is CA.

CA operates through three segments: Mainframe Solutions, Enterprise Solutions, and Services. 

The Mainframe Solutions segment offers solutions for the IBM z Systems platform.

The Enterprise Solutions segment provides a range of software planning, development, and management tools for mobile, cloud, and distributed computing environments.

The Services segment offers consulting, implementation, application management, education, and support services to commercial and government customers.

It sells its products through direct sales force, as well as through various partner channels comprising resellers, service providers, system integrators, managed service providers, and technology partners.

 The company was formerly known as CA Technologies and changed its name to CA, Inc. in 2006. CA, Inc. was founded in 1974 and is headquartered in New York, New York.

I use three key data points gauge the value of any dividend equity or fund like CA, Inc (CA): 

(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. 

CA Price

 CA's price was $35.28 per share at yesterday's market close.A year ago its price was $31.21 for a gain of $4.07 per share in the past year.  

Assuming CAs price will continue to trade in the range of $30.00 to $40.00 next year, its price could grow another $4.07 from $35.28 to $39.35 by mid- May, 2019. 

CA Dividends

CA's most recently declared quarterly dividend was $0.255 per share declared in May, and payable in June.That $0.255 Q dividend equates to an annual payout of $1.02for 2018 and yields 2.89% at yesterday's $35.28 stock price.

Gains For CA?

The $4.07 estimated year over year price gain plus an anticipated dividend of$1.02 makes a projected gross annual gain of $5.09 per share, which will be reduced by the costs to trade these shares.  

$1,000.00 invested today at the $35.28 price buys 28 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts about $0.36 per share. Taking that $0.36 brokerage cost out of the estimated $5.09 gross gain per share leaves a net gain of $4.73 X 28 shares = $132.44 or a 13.4% potential net gain on a $987.84 investment.

Therefore, CA, Inc. (whose ticker symbol is CA), now shows a possible 13.4% net gain including a 2.89% dividend yield. 

Fifteen analysts cover this stock. Two say buy; ten say hold the stock; two says underperform and the tenth says sell. Their consensus rating adds up to 3.0 or hold. 

Y Charts is "neutral" for CA for an overall "Y" rating and shows "Good" for a Value score of 8 out of ten points. YCharts also ranks CA strong with a 9 out of 10possible Fundamental points and shows aHistoric Valuation score as 28.05% overvalued. based on a $27.55 historic value.

You could look at all those numbers like this: CA, Inc, (CA) has made money, is making money, and could net a 13.4% net gain next year including2.89% dividend yield. It could be more, it could be less.

Those forward-looking numbers were 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 CA, Inc. (CA) 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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