Computer Services, Inc. Boosts Better Banking

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 Small-Cap Kentucky-based information technology services firm. The company's name is Computer Services, Inc, Its trading ticker symbol is CSVI.  

Computer Services, Inc. delivers core processing, managed services, mobile and Internet, payments processing, print and electronic distribution, and regulatory compliance solutions to financial institutions and corporate entities in the United States.

It provides its products and services to community banks, regional banks, and multi-bank holding companies, as well as to various other business enterprises.

Computer Services, Inc. was incorporated in 1965 and is headquartered in Paducah, Kentucky.

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

(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. 

CSVI Price

 CSVI's price was $48.50 per share at yesterday's market close.A year ago its price was $44.50 for a gain of $4.00 per share in the past year.  

Assuming CSVI's price will continue to trade in the range of $44.00 to $54.00 next year, its price could grow another $4.00 from $48.50 to $52.50 by mid- May, 2019. 

CSVI Dividends

CSVI's most recently declared quarterly dividend was $0.31 per share declaredMarch 8, and paid March 29.That $0.31 Q dividend equates to an annual payout of $1.24for 2018 and yields 2.56% at yesterday's $48.50 stock price.

Gains For CSVI?

The $4.00 estimated year over year price gain plus an anticipated dividend of$1.24 makes a projected gross annual gain of $5.24 per share, which will be reduced by the costs to trade these shares.  

$1,000.00 invested today at the $48.50 price buys 21 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts about $0.48 per share.

Taking that $0.48 brokerage cost out of the estimated $5.24 gross gain per share leaves a net gain of $4.76 X 21 shares = $99.86 or a 9.8% potential net gain on a $1,018.50 investment.

Therefore, Computer Services, Inc. (whose ticker symbol is CSVI ), now shows a possible 9.8% net gain including a 2.56% dividend yield. 

No analysts cover this stock. 

Y Charts is "neutral" for CSVI for an overall "Y" rating and shows "Average" for a Value score of 7 out of ten points. YCharts also ranks CSVI strong with a 7 out of 10possible Fundamental points, and shows aHistoric Valuation score as 3.77% undervalued. based on a $50.40 historic value.

You could look at all those numbers like this: Computer Services, Inc, (CSVI) has made money, is making money, and could net a 9.8% net gain next year including2.56% 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 Computer Services, Inc. (CSVI) 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, ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.