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Canon (CAJFF) designs, manufactures, and distributes an extensive range of consumer and electronic products, including copiers, cameras, lenses, and inkjet printers.The company operates four major business segments: (1) office, (2) imaging systems, (3) medical systems, and (4) industry and others.Its global customer base and domestically concentrated operations create inherent currency exposure, which can cause performance to fluctuate. Canon’s headquarters and 28 of its 46 manufacturing plants are in Japan, but nearly 80% of revenue is delivered from international markets. The firm has been expanding into new geographies and markets to mitigate this exposure.The company sells its products under the Canon brand through subsidiaries to retail dealers.Canon Inc. was founded in 1933 and is headquartered in Tokyo, Japan.Three key data points gauge Canon Inc or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three basic keys also best tell whether any company has made, is making, and will make money.
CAJFF PriceOver the past year, Canon share price grew just about 12.65% from $25.13 to $28.31 as of Friday’s market close.If Canon shares trade in the range of $20.00 to 35.00 this next year, its recent $28.31 share price might rise to $30.00 by next year. Of course, Canon’s price could drop about the same $1.69 estimated amount, or more.My annual upside estimate of $1.69 however, near the average of one year price gains over past four years.
CAJFF Dividend
Canon has paid variable semi-annual dividends for the past twenty years.Canon ’s most recent Q dividend of $0.49 was declared on January 30th for shareholders of record on December 28th and the dividend was paid on March 29th.A forward looking $1.00 annual dividend yields 3.5% at Friday’s $28.31 share price.
CAJFF ReturnsTo put it all together, add the Canon projected annual dividend of $1.00 to the estimated price upside of $1.69 to get a $2.69 estimated gross gain for the coming year.At Friday’s $28.31 share price, a little under $1000 would buy 35 shares.A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.285 per share.Subtracting that unlikely $0.285 brokerage cost from the $2.69 estimated gross gain reveals a net gain of $2.405 X 35 shares = $84.18 for about a 8.5% estimated net gain on the year.You might choose to pounce on Canon Inc. It is a 91 year-old dividend paying Tokyo-based digital imaging and storage equipment firm that has a 20 year track record paying semi-annual dividends. Furthermore, the $35.30 estimated dividend income from $1k invested is 1.25 above Canon’s recent $28.31 share price.The exact track of Canon’s 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: BB Seguridad Participacoes
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