This week, I'm looking for the sixth technology representative of six for my Ivy portfolio.
That technology sector has nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, information technology and services, to internet, scientific instruments, software, solar, and all such techno-marvels.
Today I'm reviewing a large-cap semiconductors company named Xilinx Inc. Their trading ticker symbol is XLNX.
Founded in 1984, Xilinx is the top designer of Field Programmable Gate Arrays by market share. Its chips are critical in the performance of various devices in the communications, data processing, industrial, consumer, and automotive markets. Xilinx designs and sells chips, but it outsources manufacturing to third-party chip foundries.
It sells its products through a network of independent distributors; and through direct sales to original equipment manufacturers and electronic manufacturing service providers, as well as independent sales representatives.
Xilinx, Inc. was founded in 1984 and is headquartered in San Jose, California.
I use three key data points to gauge dividend paying equities or funds like Xilinx Inc:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
XLNX Price
Xilinx's price per share closed at $122.95 yesterday. A year ago its price was $68.74. Price rose $54.21 or 79% in the past year.
Assuming Xilinx's stock trades in the range of $80.00 to $140.00 this year, Xilinx's recent $122.95 price could rise by $3.05 and go to $126.00 by mid-July, 2020.
XLNX Dividends
Xilinx's most recent quarterly dividend is $0.37 paid June 3rd.
That $0.37 Q payout equates to an annual dividend of $1.48 which produces a yield of 1.2% based on yesterday's $122.95 closing price.
Gains For XLNX?
Adding the $1.48 annual estimated dividend to my $3.05 estimate of Xilinx's price upside shows a $4.53 potential gross annual gain, per share, which will be reduced by costs to trade those shares.
Say we pay a little under $1,000.00 today at the $122.95 recent stock price, we'd buy 8 Xilinx Inc shares.
A $10 broker fee paid half at purchase and half at sale will cost us $1.25 per share.
Subtract that $1.25 brokerage cost from the estimated $4.53 gross annual gain leaves a net gain of 3.28 X 8 shares = $26.24 or a 2.65% net gain on a $983.60 investment.
Therefore, Xilinx Inc whose trading ticker symbol is XLNX, now shows a possible net gain of 2.65% including a 1.2% dividend yield.
Twenty-six brokers track Xilinx Inc stock:
Ten say "Buy" XLNX.
Two says XLNX will "Outperform" its peers.
Twelve say "Hold" your XLNX Shares.
Two say XLNX will "Underperform" its peers.
Their consensus score of 2.2 equates to "outperform."
Now we can look at Xilinx Inc and see it has made money, is making money, and could net a 2.65% gain including a 1.2% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if Xilinx Inc is worth your time and money.
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