Today I’m reviewing a small-cap aerospace & defense firm named Sturm, Ruger & Company, Inc. Its trading ticker symbol is RGR.

Sturm Ruger & Co Inc is engaged in the design, manufacture, and sale of firearms to domestic customers. The Company also manufactures and sells investment castings made from steel alloys for internal use in the firearms segment.

The company sells its firearm products through independent wholesale distributors principally to the commercial sporting market; and castings and MIM parts directly or through manufacturers’ representatives. 

The company also exports its firearm products through a network of commercial distributors and directly to foreign customers comprising primarily of law enforcement agencies and foreign governments. 

Sturm, Ruger & Company, Inc. was founded in 1949 and is headquartered in Southport, Connecticut.

I use three key data points to gauge the value of any dividend equity or fund likeSturm, Ruger & Company, Inc. (RGR): 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

RGR Price

Ruger’s price per share was $59.70 at Friday’s market close. A year ago its price was $50.70 for a gain of $9 per share.  

Assuming Ruger’s price will trade in the range of $40 to $70 next year, perhaps that $9 gain could be realized in the coming year and move RGR’s current $59.70 price to $68.70 by late-August, 2019. 

RGR Dividends

Ruger’s most recent quarterly variable dividend was $0.34declared August 3rd and paid August 31st.

At that most recent quarterly pay rate, its 2018 annual dividend is calculated at $1.36 yielding 2.28% at Friday’s closing $59.70 price.

Gains For RGR?

Adding the $1.36 estimated annual dividend to the $9.00 year over year price gain for RGR makes a $10.36gross annual per share gain, which will be reduced by costs to trade the shares.