Daily Stock Analysis: Acer Incorporated

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Acer Inc is known by the trading ticker symbol ACEYY and is a member of the technology business sector as a mid-cap computer hardware company. This is my first ever report on Acer Inc for this Vista or any of my five other dog of the week portfolios. 

Acer Inc is a hardware and electronics company specializing in advanced electronics technology. 

Its products are sold under three brands: Acer, Gateway, and Packard Bell. They include desktop PCs, clamshell laptops, 2-in-1 laptops, convertible laptops, Chromebooks, tablets, servers, storage devices, virtual reality devices, displays, smartphones, and peripherals. 

A large majority of the firm's revenue is derived from personal computers and the rest from peripherals and other products. The firm generates revenue in the Americas, Mainland China, Taiwan, and other countries across the world.

The company also repairs and maintains IT products; researches, designs, and develops Internet of Things platform; sells communication products; operates a platform for client service and products sale, and develops Internet of Beings and cloud technology; integrates cloud technology, software, and hardware. 

Acer Incorporated was incorporated in 1976 and is headquartered in New Taipei City, Taiwan.

Three key data points gauge dividend equities or funds like Acer Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

ACEYY Price

Acer Inc's price per share was $5.30 as of yesterday's market close. One year ago its price was $3.01. So ACEYY price has increased about 76% in the past year. 

If Acer Inc's stock trades in the range of $3 to $6 this next year, its recent $5.30 price might rise by $0.20 to reach $5.50 by July 20, 2022. My estimate is based on three past years of historic price activity.

ACEYY Dividends

Acer Inc's most recent regular annual dividend payout of  $0.27 is payable August 12, 2021, and yielding 5.05% based on yesterday's $5.30 closing price. ACEYY has paid annual dividends increasing annually for 5 years.

ACEYY Returns

Adding the $0.27 annual ACEYY forward-looking dividend to my $0.20 price upside estimate shows a $0.47 potential gross gain, per share, to be reduced by any costs to trade Acer Inc shares.  

At yesterday's $5.30 price per share, a little over $1000 would buy 189 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.05 per share.

Subtract that maybe $0.05 brokerage cost from my estimated $0.47 gross gain per share results in a net gain of $0.42 X 189 shares = $79.38 for a 7.93% net gain on a $1,001.70 investment.

So it is that Acer Inc shows a possible 7.93% net gain including a 5.05% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Acer Inc could generate $50.50 in cash dividends alone. And a single share bought at yesterday's closing price was $5.30! Thus, ACEYY's share price is about 22% of dividend income from $1K invested. So, according to the dividend dogcatcher ideal, this is the prime time to pick up Acer Inc shares because the dividend from $1k invested exceeds the single share price by almost  5 times. Consider yourself alerted.

All of the estimates above are speculation based on the past history of Acer Inc. Only time and money invested in this stock will determine its true worth.