Welcome back to Stock Suggestions, where we take a look at good stocks to buy in this stock market downturn.
Today, let's take a look at Sydney Airport, traded on the ASX with the code SYD. Today, the price stands at $5.78, and stood at $9.18 in December, before this whole crisis began for the West.
Let's take a closer look at some statistics.
Sydney Airport is the main airport of Sydney, Australia's most populated city with over 5.2 million people. Essentially, it is the Heathrow of Australia.
It handles 42.6 million passengers per year, and controls 348908 aircraft takeoffs and landings per year.
It is ranked within the top 5 airports in the world handling over 40 million passengers a year.
The Coronavirus downturn has severely impacted the travel industry, as much fewer people are taking flights these days. Naturally, Australia's busiest airport is going to take a hit, as they suddenly see much less business leading to lower profits. This has led to a 37% share price decrease. The airport generated over $1 billion in 2013, and we can assume that they've generated a lot more since.
It directly and indirectly is responsible for 6% of the states economic activity, and affects 300,000 jobs.
It pays a dividend of $0.19 per share every 6 months.
HOW MUCH CAN I MAKE NOW?
If you were to invest $1000 in now, you would be able to purchase 173 shares. This leads to a $32 dollar dividend every 6 months, or $64 a year.
If the price were to increase to $7, you would make a profit of $211.
If the price were to increase to $8, you would make a profit of $384.
If the price were to increase to $9, you would make a profit of $557.
Sydney Airport, or ASX:SYD, is a very good buy right now as the airport is currently seeing a downturn in traffic due to the coronavirus. Once the pandemic is over, travel will eventually return to normal and maybe even greater than what it was previously, bringing in new incomes to the airport and shooting the stock price up. During this time, an investor will make easy money off dividends.
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