Image Source: Unsplash

ASE Technology Holding Co Ltd, aka Advanced Semiconductor Engineering, Inc., (ASX) is a semiconductor assembly and testing firm. The company operates in segments: Packaging, Testing, and Electronic Manufacturing Services.

Of these, packaging services contribute the most revenue. It involves packaging bare semiconductors into completed semiconductors with improved electrical and thermal characteristics.

The Testing Segment includes front-end engineering testing, wafer probing, and final testing services. In the EMS segment, the company designs, manufactures, and sells electronic components and telecommunication equipment motherboards

The company is based in Taiwan but garners over half its sales from firms in the United States.

ASE Technology Holding Co., Ltd. was founded in 1984 and is headquartered in Kaohsiung, Taiwan.

Three key data points gauge ASE Technology Holding Co Ltd or any dividend-paying firm: (1) Price (2) Dividends (3) Returns.

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

ASX Price

Over the past year, ASE’s share price increased about 41% from $5.31 to $7.48 as of Friday’s market close.

If ASX stock trades in the range of $5.00 to $10.00 this next year, its recent $7.49 share price might rise to $7.80 by next year. Of course, ASX’s price could drop about the same $0.31 estimated amount, or more.

My upside estimate of $0.31, however, is in line with the median of target estimates from three analysts tracking ASX for brokers

ASX Dividend

ASE Technology Holding Co Ltd has paid variable annual dividends since September 27, 2007, except for 2014  and 2017.  ASX’s most recent Annual dividend, paid August 3 to shareholders of record June 30th, was $0.57

That A dividend measures up to  a forward looking yield of 7.61%.

ASX Returns

Add the $0.57 anticipated annual dividend to ASX’s estimated $0.31 possible price upside, reveals a $0.88 estimated gross gain per share for the coming year.

At Friday’s $7.49 closing price, a little over $1000 would buy 134 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.075 per share.

Subtracting that likely $0.075 brokerage cost from my $0.88 estimated gross gain per share makes a net gain of $0.815 X 134 shares = $109.21 or about a 10.75% net gain.

This could be the time to pounce on ASE Technology Holding Co Ltd shares. And beware, ASX, is a Large Cap Taiwan Semiconductor firm. Furthermore, the estimated $76.10 annual dividend from $1000 invested comes in at over 10 times greater than the recent $7.49 single share price.  The question is really, what happens next to the ASX dividend payout and price?

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

More By This Author:

Current Analysis: Sumitomo Corporation
Current Analysis: Secure Energy Services
Current Analysis: Grupo Aeroportuario Del Pacifico