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TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

AUO Corp (AUOTY) is a Taiwan-based company that manufactures & distributes thin-film-transistor liquid-crystal-display (TFT-LCD) panels to original equipment manufacturers.

The display segment generally is engaged in the research, development, design, manufacturing, & sale of flat panel displays. The energy segment is mainly engaged in the design, manufacturing, and sale of ingots, solar wafers, and solar modules, as well as providing technical engineering services and maintenance services for solar system projects.

AU Optronics has manufacturing facilities in Taiwan, Japan, and Malaysia. It operates in two segments - The display segment & energy segment, the majority is derived from the Display segment. Geographically, the majority of revenue is from the PRC (including Hong Kong).

The company was formerly known as AU Optronics Corp. and changed its name to AUO Corporation in June 2022. AUO Corporation was founded in 1996 and is headquartered in Hsinchu City, Taiwan.

Three key data points gauge AUO Corp 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.

AUOTY Price

Over the past year, AUO Corp's share price rose about 10% from $5.41 to $5.96 as of Tuesday’s market close.

If AUO Corp trades in the range of $4.50 to $8.50 this next year, its recent $5.96 share price might rise to $6.85 by next year. Of course, AUOTY’s price could drop about the same $0.89 estimated amount or more.

My annual upside estimate of $0.89 however, is in line with the average annual price increase for AUOTY shares over the past four years.

AUOTY Dividend

AUO Corp has declared variable annual dividends since August 2011. AUOTY's most recent annual dividend of $0.25 was declared July 27  to shareholders of record August 10th. The payout was made September 8th.

A forward-looking $0.25 annual dividend yields 4.19% at Tuesday’s $5.96 share price.

AUOTY Returns

To put it all together, add the estimated annual dividend of $0.25 to the estimated price upside of $0.89 to find a $1.14 gross gain.

At Friday’s $5.96 share price, a little over $1000 would buy 168 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.06 per share.

Subtracting that likely $0.06 brokerage cost from the $1.14 gross gain produces a net gain of $1.08 X 168 shares = $181.44 for an 18.1% estimated net gain.

You might choose to pounce on AUO Corp. It is a 28-year-old Taiwan-based Iiquid crystal display and solar panel engineering supplier.

Furthermore, the estimated $41.90 of annual dividend income from $1k invested is over 7 times greater than AUOTY’s recent $5.96 single share price.

The exact track of AUO Corp's 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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