Royal Mail PLC Delivers Good Service

Industrials sector includes twenty-three industries all related to designing, fabricating and servicing stuff we want and use. The industrials industries range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between.

Today I'm reviewing an integrated shipping and logistics firm named Royal Mail PLC It's trading ticker symbol is ROYMF.

Royal Mail PLC operates as a universal postal service provider in the United Kingdom and other European countries. It offers parcels and letter delivery services under the Royal Mail and Parcelforce Worldwide brands.

Royal Mail plc was incorporated in 2013 and is headquartered in London, the United Kingdom.

I use three primary keys to measure dividend equities or funds like Royal Mail PLC (ROYMF): 

(1) Price

(2) Dividends

(3) Returns

Besides those three main keys, I'll use four more to finally unlock an equity or fund in which to invest.

These first three keys best test whether the company has made, is making, and will continue to make money.

ROYMF Price

Royal Mail PLC 's price at yesterday's market close was $6.23 per share. The company shows one-year positive price momentum. Just a year ago its price was $5.36. So it's a gained  $0.87 per share in the past year. Can ROYMF do as well in the coming year? If it does, its price will increase from $6.23 to $7.10 per share or about 14 %.

ROYMF Dividends

Royal Mail PLC's most recent variable semi-annually paid dividend was $0.103 declared in November 2017, and paid December 7th.  

The company has paid semi-annual dividends since  2013.

The consensus forward-looking annual dividend for 2018 is $0.29 payable semi-annually at about $0.19 in June and $0.10 in December.

The yield from a $0.29 dividend at yesterday's $6.23 price is 4.65%

Are Gains Ahead For ROYMF?

Adding the $0.29 dividend  to the $0.87 estimated price gain (to repeat last year's) shows a potential $1.16 gross gain.  

But there are costs for the Royal Mail PLC shares at purchase and at sale. A  $1,000.00 worth of shares at Friday's $6.23 closing price would let us purchase 161 shares. 

Those 161 shares will be hit with a broker fee of $5 at purchase and another $5 at sale (for a total of $10 to get the gains). Each share then has a brokerage cost of about $0.0620

Subtracting that $0.0620 brokerage cost from the estimated $1.16 gross gain shows a net gain to 2019 of $1.098

X 161 shares 

= $176.78

or about a 40% net gain on our $1,003.03 investment.

Therefore, Royal Mail PLC (whose ticker symbol is ROYMF), shows a possible 17.6% gain by my simple year over year calculation with a 4.65% dividend baked in. There is no analyst coverage on this stock but stock price since 2011 has shown a fairly steady decline until 2017 when it began to climb back after Hallowe'en.

These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen.  They could turn out to move lower. More study is required for you to determine if Royal Mail PLC is worth your time and money.

Disclaimer: For more information and to get a two-week free sample of my stock portfolios just click on this link. Click on ...

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