Current Analysis: Suburban Propane

Image Source: PixabaySuburban Propane Partners LP (SPH) distributes propane, fuel oil, and other refined fuels to customers in the East Coast and West Coast regions of the United States.Other operations include natural gas and electricity marketing in the deregulated New York and Pennsylvania markets.The company operates in three segments: (1) Propane; (2) Fuel Oil and Refined Fuels; and (3) Natural Gas and Electricity. It generates maximum revenue from Propane segment.Suburban Propane Partners, L.P. was founded in 1945 and is based in Whippany, New Jersey.Three key data points gaugeSuburban Propane or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three basic keys best tell whether any company has made, is making, and will make money.SPH PriceOver the past year, Suburban Propane share price rose about 21% from $15.08 to $18.24 as of Thursday’s market close.If SPH trades in the range of $14.00 to $22.00 this next year, its recent $18.24 share price might rise to $20.00  by next year. Of course, Suburban Propane price could drop about the same $1.76 estimated amount, or more.My annual upside estimate of $1.76 however, a little less than the SPH average annual price increase over the past two years.SPH DividendSuburban Propane has paid Quarterly variable dividends since August 13, 1996. SPH’s most recent Q dividend of $0.325 was paid November 14, 2023 to shareholders of record November 6th. The forward looking $1.30 annual dividend yields 7.13% at Thursday’s $18.24 share price.SPH ReturnsTo put it all together, add the estimated annual dividend of $1.30 to the price upside of $1.76 to find a $3.06 gross gain.At Thursday’s $18.24 share price, a little over $1000 would buy 55 shares.A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us  $0.18 per share.Subtracting that likely $0.18 brokerage cost from the $3.06 gross gain produces a net gain of $2.88 X 55 shares = $158.40 for a 15.8% estimated net gain.You might choose to pounce on Suburban Propane It is a 78 year-old New Jersey, Gas energy outfit. Furthermore, the estimated $71.30 of dividend income from $1k invested is 3.9 times greater than SPH’s $18.24 single share price.The exact track of Suburban Propane Partners LP ongoing future price and dividend is yet to be known.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Analysis: ENGIE Brasil Energia SA
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