Can Electrolux Elegance Breach Market Moats

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 latest portfolio seeks a high-yield and growing stock in the technology sector. That 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 consumer electronics firm. It's a mid-cap stock with market capital of between $2 billion and $10 billion. Its name is AB Electrolux (publ)Its trading ticker symbol is ELUXF

Electrolux AB (publ) is a Sweden-based company which offers well-designed and sustainable products for households and businesses. Its products include refrigerators, dishwashers, washing machines, vacuum cleaners, air conditioners and small domestic appliances.

It provides its products under the Electrolux, AEG, Zanussi, Frigidaire, Anova, and Westinghouse brands.

The company sells its products to retailers, buying groups, independent stores, and professional users. 

AB Electrolux (publ) was founded in 1901 and is headquartered in Stockholm, Sweden.

I use three key data points gauge the value of any dividend equity or fund like AB Electrolux (ELUXF): 

(1) Price

(2) Dividends

(3) Returns

ELUXF Price

AB Electrolux's price was $30.35 per share at yesterday's market close.A year ago its price was $28.50 for a gain of $1.85 per share in the past year.  

Assuming AB Electrolux's price will trade between the range of $26.00 to $36.00 next year, its price could grow another $1.85 from $30.35 to $32.20 by April, 2019. 

ELUXF Dividends

AB Electrolux's most recent variable semi-annual dividend was $0.47 declared February 2017 and paid in October last year.Total annual dividend paid in 2017 was $0.89.No dividend has yet been declared for 2018. However, a repeat of the $0.89 amount for 2018 would yield 2.9% ar yesterdays stock price.

Gains For ELUXF?

The $1.85 estimated year over year price gain plus an anticipated dividend of$0.89 makes a projected gross annual gain of $2.74, which will be reduced by the cost to trade these shares.  

$1,000.00 invested today at the $30.35 price buys 33 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts about $0.30 per share Taking that $0.30 brokerage cost from the estimated $2.74 gross gain leaves a net gain of $2.44 X 33 shares = $80.52 or an 8% potential net gain on a $1,001.55 investment.

Therefore, Electrolux AB (publ) (whose ticker symbol is ELUXF), now shows a possible 8% net gain including a maybe 3% dividend yield. 

No analysts cover this stock. Its most significant price move was a drop of 14% from $35.30 to its present $30.35 between October second, 2017 and April eighteenth, 2018.

The 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 AB Electrolux (publ) (ELUXF) 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 solicitation, ...

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