Current Analysis: KDDI

person using MacBook Pro on tableImage Source: UnsplashKDDI (KDDIY) is Japan’s second-largest wireless operator (31% market share), the largest pay-TV operator (53% market share), and the second-largest provider of fiber-to-the-home broadband (12% market share).It has grown through acquisition and is focusing on increasing the number of customers who subscribe to more than one telecommunication service.It is also looking to grow its Life Design business which includes commerce, energy, and finance, and have over 42 million Internet of Things connections by the end of September 2023.The company was incorporated in 1984 and is headquartered in Tokyo, Japan.Three key data points gauge KDDI Corp 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.KDDIY PriceOver the past year, KDDI’s share price rose 7.4% from $14.48 to $15.55 as of Friday’s market close.If KDDI stock trades in the range of $14.00 to $18.00 this next year, its recent $15.55 share price might rise to $16.60 by next year. Of course, KDDI’s price could drop about the same $1.05 estimated amount or more.My upside estimate of $1.05, however, is about equal to past-year target price gain by KDDI.KDDIY DividendKDDI Corp has paid variable semi-annual dividends since June 30, 2011.  KDDI’s most recent  SA dividend, of $0.25 was paid on July 7, 2023 a December dividend has not been declared and is overdue. Forward-looking annual yield for KDDI’s $0.50 annual dividend would be 3.22%KDDI ReturnsPutting it all together, we add the estimated forward-looking dividend of  $0.50 to my estimated price upside of $1.05 and find a $1.55 gross gain.At Monday’s $15.55 closing price, a little over $1000 would buy 64 shares.A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.16 per share.Subtracting that likely $0.16 brokerage cost from the $1.55 estimated gross gain per share makes a net gain of $1.39 X 64 shares = $88.96 or about an 8.9% net gain.You might choose to pounce on KDDI Corp shares. KDDI is an expanding telecommunications company that is making money and gaining customers furthermore the estimated $32.20 dividend income from $1k invested is a little over 2 times greater than the price of a single share.The question of what will happen to KDDI’s price and dividend is yet to be answered.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Analysis: PCTEL
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