Current Analysis: KDDI Corp

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KDDI Corp (KDDIY) is Japan's second-largest wireless operator (31% market share), the largest pay-TV operator (53% market share) and the second-largest provider of fibre-to-the-home broadband (12% market share).

It has grown through acquisition and is focusing on increasing the number of customers who subscribe to more than one of its telecommunication services.

It is also looking to grow its Life Design business which includes commerce, energy, and finance and had over 45 million Internet of Things connections by the end of December 2023.

The company was incorporated in 1984 and is headquartered in Tokyo, Japan.

Three key data points gauge

KDDI 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.

KDDIY Price

Over the past year, KDDIY share price rose about 0.074% from $14.89 to $15.00 as of Monday’s market close.

If KDDIY trades in the range of $14 to $17 this next year, its recent $15.00 share price might rise to $15.67 by next year. Of course, KDDIYs price could drop about the same $0.67 estimated amount, or more.

My annual upside estimate of $0.67 however, is in line with the average one year price upsides over the past ten years.

KIDDY Dividend

KDDI Corp has paid variable semi-annual dividends since December, 2010. KDDIY’s recent SA dividend of $0.2381 was declared September 6th to shareholders of record September 28th. The payout was made December 20th.

The forward looking $0.48 annual dividend yields 3.17% at Monday’s $15.00 share price.

KDDIY Returns

To put it all together, add KDDI Corp’s estimated annual dividend of $0.48 to the estimated price upside of $0.67 to find a $1.15 gross gain.

At Friday’s $15.00 share price, a little over $1000 would buy 67 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about  $0.15 per share.

Subtracting that likely $0.15 brokerage cost from the $1.15 gross gain produces a net gain of $1.00 X 67 shares = $67.00 for a 6.6% estimated net gain.

You might choose to pounce on KDDI Corp It is a 40 year old dividend paying Tokyo based telecom company.  Furthermore, the estimated $31.70 of annual dividend income from $1k invested is over 2 times greater than KDDIY’s recent $15.00 single share price.

The exact track of the KDDI Corp 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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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 ...

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