Current Report: Kobe Steel

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Kobe Steel Ltd (KBSTF) is a Japan-based company that is primarily engaged in iron and steel, aluminum and copper, construction machinery, nonconstruction machinery, and engineering businesses.

Its iron and steel business involves the production of steel products, steel casting and forging, and manufacturing of titanium and steel powder.

Its aluminum and copper segment manufactures aluminum and copper products.

Its construction machinery segment develops and manufactures construction equipment.

The nonconstruction machinery segment offers industrial machinery, compressors, and equipment for the nuclear and other energy industries.

The engineering segment provides solutions to plants, power stations, and water treatment companies.

Japan and China account for the majority of the company’s revenue.

The company was founded in 1905 and is headquartered in Kobe, Japan.

Three key data points gauge

Kobe Steel Ltd or any dividend paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

KBSTF Price

Share price fell 18.7% over the past year from $12.40 to $10.08, as of Monday’s market close.

In the past 3 years, the company’s share price has ranged from $3.40 to $14.45. Its all-time high price of $26.00 was reached April 6, 2011.

If shares trade in the range of $9.00 to $14.00 this next year, the recent $10.08 share price might grow to $11.00. Of course, KBSTF shares could also drop about the same $0.92 estimated amount or more.

My $0.92 price upside estimate is based on the company’s average annual stock price gain to date over the past five years.
 

KBSTF Dividend

Kobe Steel Ltd has paid variable semi-annual dividends since June 2010. The company’s most recent SA dividend of $0.30 was declared May 9th for shareholders of record prior to March  28, 2025, and the dividend will likely be paid in May 2025. A forward looking annual dividend of $0.60 yields 5.95% per Monday’s closing price.
 

KBSTF Returns

Putting it all together, a $1.52 estimated annual gross gain per share shows up by adding Kobe Steel Ltd’s annual $0.60 dividend to the estimated price upside of $0.92, totals that $1.52 gross gain.

A little under $1000 buys 99 shares at Monday’s $10.08 share price.

A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.10 per share out of the $1.52 gross-gain to give us a net gain of 1.42 X 99 shares = $140.58 for about a 14% estimated net gain on the year.

Furthermore, the $59.50 annual estimated dividend income from $1k invested in KBSTF is 5.9 times greater than the $10.08 single-share price. By these numbers, KBSTF may be an ideal materials dividend dog.

Therefore, you may want to pounce on Kobe Steel Ltd

It is a soon to be 120 year-old variable semi-annual dividend paying steel and manufacturing company with a 15 year dividend record.

The exact track of Kobe Steel Ltd future price and dividend will entirely be determined by market action and company finances.

Remember the best measure of stock value is through direct ownership of shares.


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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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