Wednesday, December 21, 2022 3:04 AM EST
Lenovo Group Ltd bears the ticker symbol (LNVGY), and this is my first mention of LNVGY for my new Viking Portfolio but it was selected for one of my previous Dog of The Week Portfolios.
Pixabay
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Lenovo is a global technology hardware company with a leading market share in personal computers.
Its operations are divided into three main business segments: (1)PC and smart devices, (2) mobile, and (3) data center, which account for 70%, 11%, and 10% of sales, respectively. The firm has been actively growing its data center business, which primarily sells network servers to enterprise and hyperscale customers, as well as storage equipment through its mainland China joint venture with NetApp.
Server-related revenue contribution has jumped to 10% of overall sales in fiscal 2021 from 6% in 2015.
It operates in China, the Asia Pacific, Europe, the Middle East, Africa, and the Americas.
Lenovo Group Limited was founded in 1984 and is based in Quarry Bay, Hong Kong.
Three key data points gauge
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Lenovo Group Ltd:
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(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
LNVGY Price
Lenovo’s price per share was $15.89 at Monday’s market close. And, in the past year, LNVGY’s share price fell by $6.00 or about 27.5%.
If LNVGY’s stock trades in the range of $12.00 to $20.00 this next year, its recent $15.89 share price might reach $16.35 by next year. My upside increase estimate of $0.46 just about lines up with the average of one year price gains for Lenovo over the past 20 years.
LNVGY Dividends
Lenovo’s most recent quarterly dividend of $0.2045 per share, equates to $0.82 annually and casts an annual yield of 5.17%.
LNVGY Returns
Adding the $0.82 annual estimated Lenovo dividend to my one-year price upside estimate of $0.46 reveals a $1.28 potential gross gain per share.
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At Tuesday’s $15.89 closing price, a little over $1000 would buy 63 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.16 per share.
Subtract that maybe $0.16 brokerage cost from my estimated $1.28 gross gain makes a net gain of $1.16 X 63 shares = $73.08 for a 7.3% net gain including a 5.17% annual dividend yield.
In one year our $1K investment in shares of Lenovo Group would generate $51.70 in cash dividends. Of course, a single share of LNVGY stock at Tuesday's $15.89 price is over 3 times less than the annual dividend income from our $1000.00 investment.
So, by my dogcatcher ideal, this is a good time to buy LNVGY shares based on their dividends for the coming year 2023. The current dividend from $1K invested is 3.25 times more than LNVGY’s single share price. Consider yourself alerted.
All of the estimates above are speculation based on the past history of Lenovo Group Ltd. Only time and money invested in this stock will determine its market value.
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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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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, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.
Disclosure:
This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts.
Catch Your Underdog Daily Dividend on Facebook!
The night before every NYSE trading day on Facebook/ Dividend Dog Catcher Fredrik Arnold usually does a quick live video summary of one stock contending for a weekly slot on his new Viking portfolio.
Last night Arnold followed this script on his Underdog Daily Dividend Show!
Always remember: Root for the Underdog.
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