Oaktree Capital Invests In Alternative Markets
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 has an opening for a company in the financial services sector.
That sector includes nineteen industries all related to managing money. Industries include: asset management; banks either global or from any of seven regions, capital markets, credit services, financial exchanges, insurance in six specializations, savings banks, and specialty finance.
Today I'm reviewing an asset management firm named Oaktree Capital Group, LLC, its trading ticker symbol is OAK.
OAK invests in distressed debt, corporate debt, control investing, convertible securities, real estate and listed equities.
The company pursues these strategies through closed-end, open-end, and evergreen funds. Oaktree Capital Group, LLC was founded in 1995 and is headquartered in Los Angeles, California.
I use three primary keys to measure dividend funds or equities like Oaktree Capital Group, LLC(OAK):
(1) Price
(2) Dividends
(3) Returns
OAK Price
OAK's price at yesterday's market close was $45.85 per share, which is $15.45 over the $30 limit set for my Safari portfolio. The fund has provided income and price appreciation got investors. A year ago its price was $43.40. Meaning it's price is up $2.55 in the past year.
If OAK does the same in the coming year its price will increase from that $45.85 to $48.40 per share or about 5.5%.
OAK Dividends
OAK's most recent quarterly distribution was $0.76 per share declared February 5 and to be paid out February 23rd.
The annual dividend projected for 2018 is estimated at $3.34 per share payable monthly at a variable rate ranging from $0.51 to $1.31 per quarter in February. May, August, and November.
The yield from that $3.34 annual dividend would be 7.3% at yesterday's $45.85 price.
Gains For OAK?
Adding the $3.34 estimated annual dividend to the $2.55 year-over-year possible pice gain projects a $5.89 total possible upside for the coming year. But there will be a brokerage cost to subtract.
A$1,000.00 invested at yesterday's $45.85 price would have bought 22 shares.
Those 22 shares will be hit with a broker fee of $5 at purchase and another $5 at sale for a per share brokerage cost of $0.45 per share
Subtracting that $0.45 brokerage cost from the estimated $5.89 gross gain leaves a net gain to 2019 of $5.44 X 22 shares = $119.68 or almost a 12% net gain on a $1,008.70 investment.
Therefore, Oaktree Capital Group, LLC (whose ticker symbol is OAK), shows a possible 12% net gain for the coming year to February 2019.
Ten analysts cover this stock and two say it will outperform and eight say it's a hold. Their consensus price target into 2019 is $50.33 or $1.93 higher than my year-over-year estimate of $48.40.
These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen. They could turn out to prove to be far lower. More study is required for you to determine if Oaktree Capital Group, LLC (OAK) 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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