Image Source: UnsplashTM Editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.Founded in 1980, United Microelectronics (UMC) is the world’s third-largest dedicated chip foundry, with a 7% market share in 2023 after TSMC and GlobalFoundries.UMC’s headquarters are in Hsinchu, Taiwan, and it operates 12 fabs in Taiwan, Mainland China, Japan, and Singapore, with additional sales offices in Europe, the U.S., and South Korea.UMC serves a diverse customer base including Texas Instruments, MediaTek, Qualcomm, Broadcom, Xilinx, and Realtek, supplying a wide range of products applied in communications, display, memory, automotive, and more.UMC employs about 20,000 people.As mentioned, the company was incorporated in 1980 and is headquartered in Hsinchu, Taiwan.Three key data points gauge United Microelectronics 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.UMC PriceOver the past year, UMC’s share price fell about 2.4% from $8.20 to $8.00 as of Wednesday’s market close.If UMC’s shares trade in the range of $6.50 to $10.00 this next year, its recent $8.00 share price might rise to $9.00 by next year. Of course, UMC’s price could drop about the same $1.00 estimated amount, or more.My annual upside estimate of $1.00 however, is $0.17 under the average of UMC’s one year stock price upsides over the past five years.UMC DividendUnited Microelectronics has paid variable annual dividends since September 2005. UMC’s most recent dividend of $0.58 was declared June 7th, 2023 for shareholders of record June 26th and the payout was made July 26th.A forward-looking $0.58 annual dividend yields 7.25% at Wednesday’s $8.00 share price.UMC ReturnsTo put it all together, add the UMC estimated annual dividend of $0.58 to the estimated price upside of $1,00 to find a $1.58 estimated gross gain for the coming year.At Wednesday’s $8.00 price, a little under $1000 would buy 125 shares.A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us $0.08 per share.Subtracting that likely $0.08 brokerage cost from the $1.58 gross gain reveals a net gain of $1.50 X 125 shares = $187.50 for  a 18.75% estimated net gain on the year.You might choose to pounce on United Microelectronics. It is a 44 year-old dividend paying Hsinchu, Taiwan-based dedicated chip foundry.  Furthermore, its estimated $72.50 annual dividend income from $1k invested is over 9 times greater than UMC’s recent $8.00 share price.The exact track of United Microelectronics Corp upcoming future price and dividend will entirely be determined by market action.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Analysis: Trend Micro Inc
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