Canon Inc (CAJFF) designs, manufactures, and distributes an extensive range of consumer and electronic products, including copiers, cameras, lenses, and inkjet printers. Canon Inc. was founded in 1933 and is headquartered in Tokyo, Japan.

The company operates four major business segments: (1 ) office, (2) imaging systems, (3) medical systems, and (4) industry and others.

Canon's headquarters and 28 of its 46 manufacturing plants are in Japan, but nearly 80% of revenue is delivered from international markets. The firm has been expanding into new geographies and markets to mitigate this exposure.

Its global customer base and domestically concentrated operations create inherent currency exposure, which can cause performance to fluctuate.

Three key data points gauge Canon Inc, 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.

CAJFF Price

Over the past year, Canon’s share price increased over 39% from $18.70 to $26.00 as of Friday’s market close.

If Canon’s stock trades in the range of $15.00 to $30.00 this next year, its recent $26.00 share price might rise to $28.00 by next year. Of course, Canon’s price could drop about the same $2.00 amount, or more.

My upside estimate of $2.00, however, is nearly equal to the $2.30 average annual gains over the past three years.

CAJFF Dividend

Canon’s most recent variable dividends have been paid semi-annually. Its most recent dividend, due in March, was not paid.   Canon’s SA dividend has varied between $0.44 and $0.48 in the past three years, and would yield 3.54% annually, if paid.

CAJFF Returns

Adding the $0.92 anticipated annual dividend to Canon’s estimated $2.00 price upside, reveals a $2.92 potential gross gain per share for the coming year.

At Friday’s $26.00 closing price, a little over $1000 would buy 38 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.26 per share.

Subtracting that maybe $0.26 brokerage cost from my estimated $2.92 gross gain per share makes a net gain amounting to $2.66 X 38 shares = $101.80 for about a 10% net gain.

This may be the time to pounce on Canon Inc. But beware, Canon’s SA dividend is variable, and doubtful at this time. Also, its price is recovering from a recent low of $15.58 as of October 20, 2020 after achieving an all time high of $63.25 high back in March 28, 2006. So, expect volatility in both price and dividend from CAJFF.

The foregoing article is based on past history of Canon Inc. The only accurate measure of future performance is from active investment in the company.

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