John Wiley & Sons, Inc. publishes print and electronic products that provide content and digital solutions. It operates in three segments, viz., (1) Scientific, Technical, Medical, and Scholarly; (2) Professional/Trade; and (3) Higher Education. Segment 1 products include journals, encyclopedias, books, databases, and laboratory manuals in various publishing areas. Segment 2 products includes books, subscription content, and information services in subject such as business, technology, architecture, professional culinary, psychology, education, travel, health, religion, consumer reference, pets, and general interest. Segment 3 products focus on courses in business and accounting, sciences, engineering, computer science, math, social sciences, and other academic course material. John Wiley & Sons, Inc. was founded in 1807 and is based in Hoboken, New Jersey. Risk Parameter Calculation Fair Value Calculation The range of fair value is calculated as $24.7 to $30.8. I determined by taking average (for high value) of above five parameters and then subtracting it with half the standard deviation (for low value). Conclusion
JW.A is a dividend achiever and has been raising dividends for last 16 years. The most recent dividend increase was in July 2009. My objective here is to analyze if JW.A still continues to be a good dividend growth stock and how does it rate on my scale of risk-to-dividends.
Here I am looking at trends for past 10 years of corporation’s revenue and profitability. These parameters should show consistently growth trends. The trend charts and data summary are shown in images below.
Here I use the corporation’s financial health to assign a risk number for measuring risk-to-dividends. The risk number for risk-to-dividends is 1.86. This is a medium risk category as per my 3-point risk scale. The increased financial leverage and reduction in EPS (relative to its historical average) makes it a medium risk to dividends.
Quality of Dividends
This section measures the dividend growth rate, duration of growth, consistency over a period of past five years.
This section determines what price I should pay to buy a given stock
John Wiley & Sons, Inc. was founded in 1807 and is based in New Jersey. That is more than 100 year old corporation. It has survived all the significant ups and downs of modern global economics. This demonstrates that it keeps adapting to changes in the market place.
I like JW.A diversified revenue stream and geographical presence. Overall, it is a US based company that will provide hedge against dollar fluctuation and proxy for foreign developed/emerging markets. It has been raising dividends for last 16 years. The stock’s current risk-to-dividend rating is 1.86 (medium risk). The current pricing of $31 and change is very close to my buy range. I would be open to initiating or adding to my position as per my allocation levels.
Full Disclosure: No position at the time of writing.
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Risk Parameter Calculation
Fair Value Calculation
The range of fair value is calculated as $24.7 to $30.8. I determined by taking average (for high value) of above five parameters and then subtracting it with half the standard deviation (for low value).