ASMPT Ltd (ASMVF) designs, manufactures and sells precision equipment used to assemble semiconductors and other electronic equipment.

Listed on the Hong Kong Stock Exchange since 1989, ASMPT (formerly ASM Pacific Technology) is headquartered in Hong Kong and has operations in Asia, Europe and the U.S.

It is the largest supplier globally in both the assembly and packaging equipment market and the surface mounted technology market.

Three key data points gauge ASMPT Ltd  or any dividend-paying firm. The key three are:

(1) Price

(2) Dividends

(3) Returns

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

ASMVF Price

Over the past year, ASMPT Ltd share price rose about 11% from $8.42 to $9.35 as of Friday’s market close.

If ASMPT trades in the range of $8.00 to $12.00 this next year, its recent $9.35 share price might rise to $9.70 by next year. Of course, ASMVF’s price could drop about the same $0.35 estimated amount, or more.

My annual upside estimate of $0.35 however, is in line with the average annual price increase for ASMVF shares over the past eight years.

ASMVF Dividend

ASMPT Ltd has declared variable annual and lately semi-annual dividends since August, 2011. ASMVF most recent annual dividend of $0.32 was declared in May at $0.24 and in August at $0.08  to shareholders of record May 12 and August 14th. The final payout was made August 31st.

A forward looking $0.32 annual dividend yields 3.42% at Friday’s $9.35 share price.

ASMVF Returns

To put it all together, add the estimated annual dividend of $0.32 to the estimated price upside of $0.35 to find a $0.67 gross gain.

At Friday’s $9.35 share price, a little over $1000 would buy 107 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.09 per share.

Subtracting that likely $0.09 brokerage cost from the $0.67 gross gain produces a net gain of $0.58 X 107 shares = $60.99 for a 6.1% estimated net gain.

You might choose to pounce on ASMPT Ltd. The estimated $34.20 of annual dividend income from $1k invested is about 3.65 times greater than ASMVF’s recent $9.35 single share price.

The exact track of ASMPT Ltd ongoing future price and dividend will be determined by market action.

Remember, the true value of any stock is best realized through personal ownership of shares.

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