Siam Cement Group Is All Business

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 latest portfolio I'm building (my Safari To Sweet Success portfolio) seeks a high-yield and growing stock in the basic materials sector. That sector includes thirteen industries all tied to mined or manufactured commodities. Basic Materials Industries include: agricultural inputs, aluminum; building materials, chemicals, coal, copper, gold, industrial metals, lumber & wood, paper, silver, specialty chemicals, and steel. 

Today I'm reviewing a Thailand-based conglomerate operating in Southeast Asia and Internationally 

The company's name is The Siam Cement Public Company Limited Its trading ticker symbol is SCVPY

Siam Cement PCL and its subsidiaries form an industrial group which operates core businesses of SCG Cement-Building Materials, SCG Chemicals, SCG Packaging, and SCG Investments.

Some of its building products include concrete and paving blocks, decorative products and fittings. The Chemicals segment sells olefins, polyolefins and other chemical products. The SCG Packaging segment manufactures and sells paper and plastic packaging products. The investments segment is into machine, automotive parts and components, steel businesses, and other services. 

The Siam Cement Public Company Limited (SCVPY) was founded in 1913 and is headquartered in Bangkok, Thailand.

I use three key data points gauge the value of any dividend equity or fund like Siam Cement. (SCVPY): 

(1) Price

(2) Dividends

(3) Returns

SCVPY Price

Siam Cement's price was $16.45 per share at Yesterday's market close.  A year ago its price was $15.11 for a gain of $1.34 per share in the past year.  

Assuming SCVPY's price will trade between the range of $14.00 to $18.00 next year, its price could grow another $1.34 from $16.45 to $17.79 by May, 2019. 

SCVPY Dividends

Siam Cement's most recent variable semi-annual dividend was $0.33 declared in April payable May 7th. The total annual dividend for 2018 is estimated at $0.67 per share for a yield of 4% at yesterday's $16.45 stock price.

Gains For SCVPY?

The $1.34 estimated year over year price gain plus an anticipated dividend of  $0.67 makes a projected gross annual gain of $2.01 per share, which will be reduced by costs to trade those shares.  

$1,000.00 invested today at the $16.45 price buys 61 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts $0.16 per share. Taking that $0.16 brokerage cost out of the estimated $2.01 gross gain leaves a net gain of $1.85 X 61 shares = $112.85 or an 11.3% potential net gain on a $1003.45 investment.

Therefore, The Siam Cement Public Company Limited (whose ticker symbol is SCVPY ), now shows a possible 11.3% net gain including a 4% dividend yield. 

No analysts cover this stock. However, Y Charts rates the stock "attractive", giving Siam Cement an "excellent" value score at 10 of 10 points possible, a "strong" fundamental score with 10 out of 10 points, and sees the stock as 19.62% undervalued.

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 Siam Cement Public Company Limited (SCVPY) 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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