Image Source: PixabayTM Editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.Medallion Financial Corp (MFIN) is a finance company that originates and services consumer loans in various industries.Its operating segments include recreation, home improvement, commercial lending, medallion lending, and Corporate and Other Investments including debt, mezzanine, and equity investment capital to companies in various commercial industries; deposits, and other banking activities.The company generates maximum revenue from the Recreation segment.Medallion Financial Corp. was incorporated in 1995 and is headquartered in New York City, New York.Three key data points gauge MFIN or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three keys also best tell whether any company has made, is making, and will make money.MFIN PriceOver the past year, Medallion Financial Corp’s share price rose 12% from $7.44 to $8.07 as of Tuesday’s market close. In the past 28 years, the company’s share price has never been less than $1.30 nor higher than $31.36.If MFIN shares trade in the range of $6.00 to $12.00 this next year, the recent $8.07 share price might reach $10.00. Of course, the MFIN price could also drop about the same $1.93 estimated amount or more.My $1.93 upside estimate is based on the median of one-year price targets estimated by two analysts tracking MFIN for brokers.MFIN DividendMedallion Financial Corp has paid variable quarterly dividends since November 1996. The most recent $0.10 Q dividend was declared July 30th, for shareholders of record August 15th, and the dividend was paid August 30th. A forward-looking $0.40 annual dividend yields 4.96% at Tuesday’s closing price.MFIN ReturnsPutting it all together, a $2.33 estimated one-year gross gain per share shows up by adding Medallion Financial’s $0.40 estimated annual dividend to the estimated price upside of $1.93, making that $2.33 gross gain total.A little over $1000 buys us 124 shares at the $8.07 share price.A $10 broker fee (if charged), paid half at purchase and half at sale, takes about $0.08 per share out of the $2.33 gross gain to give us a net gain of $2.25 X 124 shares = $279.00 for about a 27.5% estimated net gain for the year.Furthermore, the $49.60 annual dividend income from $1K invested is nearly 5 times more than the $8.07 share price. By these numbers, MFIN may be an ideal dividend dog at this time.Thus, you might choose to pounce on MFIN It is a 29-year-old quarterly variable dividend-paying New York-based specialty lending company with a 28-year record paying variable quarterly dividends.The exact track of MFIN’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 Report: Capital Southwest
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