Founded in Australia in 1978, Computershare (CMSQY) has grown via acquisitions to become the world's leading provider of issuer services.

Employee share plans and communications services are commonly sold together with issuer services to corporations.

The company also operates a retail mortgage administration business, alongside a business services business and a corporate trust business.

Over the medium term, around half of group EBITDA is expected to be generated from interest income on client cash balances, or margin income, which is exposed to interest-rate movements.

 It operates in Australia, New Zealand, Asia, Canada, Continental Europe, the United Kingdom, the Channel Islands, Ireland, Africa, and the United States.

The company is based in Abbotsford, Australia.

Three key data points gauge

Computershare Ltd 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.

CMSQY Price

Over the past year, Computershare Ltd's share price decreased about 9.35% from $17.76 to $16.10 as of Tuesday’s market close.

If Computershare trades in the range of $13.00 to $18.00 this next year, its recent $16.10 share price might rise to $17.50  by next year. Of course, the Computershare price could drop about the same $1.40 estimated amount or more.

My annual upside estimate of $1.40 however, is about $0.30 under the average one-year price growth over the past three years.

CMSQY Dividend

Computershare Ltd has paid Semi-Annual variable dividends since July 18, 2017.  Computershare’s most recent SA dividend go $0.40 was paid September 18, 2023, to shareholders of record August 22nd. The forward-looking $0.82 annual dividend yields 5.10% at Tuesday’s $16.10 share price.

CMSQY Returns

To put it all together, add the annual dividend of  $0.82 to the price upside of $1.40 to find a $2.22 gross gain.

At Tuesday’s $16.10 share price, a little under $1000 would buy 62 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.16 per share.

Subtracting that likely $0.16 brokerage cost from the $2.22 estimated gross gain per share produces a net gain of $2.06 X 62 shares = $127.72 for a 12.8% estimated net gain.

You might choose to pounce on Computershare Ltd. It is a 45-year-old Australia-based Capital Markets business. Furthermore, the estimated $51.00 of dividend income from $1k invested is over 3 times greater than Computershare’s $16.10 single share price.

The exact track of Computershare Ltd’s ongoing future price and dividend is yet to be known.

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

More By This Author:

Current Analysis: Carlyle Secured Lending
Current Analysis: Barco NV
Current Analysis: DTS Corporation