KONE Engenders Elevators & Escalators Elegantly

This week my Safari portfolio seeks a high yield and 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 another diversified industrials firm. It's a large-cap stock with market capital over $10 Billion. KONE Oyj. It's trading ticker symbol is KNYJY

KONE develops, makes and sells elevators and escalators. Its products include elevators, escalators, monitoring & access control systems, and automatic building doors as well as upgrade and maintenance solutions.

It serves architects, consultants, builders, developers, housing corporations, building owners, and facility managers worldwide. 

KONE Oyj was founded in 1910 and is headquartered in Helsinki, Finland.

I use three key data points gauge the value of dividend equities or funds like KONE Oyj  (KNYJY): 

(1) Price

(2) Dividends

(3) Returns

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

The first three primary keys, however, best tell whether a company has made, is making, and will make money. 

KNYJY Price

KONE's price was $24.32 per share at yesterday's market close.  A year ago its price was $22.29 for a gain of $2.03 per share.  

Assuming KONE's price trades in the same range of $22 to $29 this year, its price could grow another $2.03 from $24.32 to $26.35 by April, 2019. 

KJYJY Dividends

KONE's most recent annual dividend was $1.02 declared in February, and paid March 22, 2018. 

This annual payout pegs its annual yield at 4.2% at yesterday's $24.32 share price. 

Gains For KNYJY?

Adding the $1.02 annual dividend to the $2.03 estimated year over year price gain makes a $3.05 projected gross annual gain, which is reduced by the cost to trade these shares.  

$1,000.00 invested today at the $24.32 price buys 41 shares. 

A $10 broker fee paid half at purchase and half at sale costs $0.24 per share

Subtracting that $0.24 brokerage cost from the estimated $3.05 gross leaves a net gain of $2.81 X 41 shares 

= $115.21 or a 11.5% net gain on a $997.12 investment.

Therefore, KONE Oyj (whose ticker symbol is KNYJY), now shows a possible 11.5% net gain including a 4% dividend yield. 

No analysts cover this stock. However, its past 6-year price history shows steady but somewhat choppy growth from April, 2012 to a recent peak of $28.95 as of February 2, 2018 from which the stock price declined 16% to its present $24.32 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 KONE Oyj  (KNYJY) 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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