Matthews International Corp (MATW) is a personal services company that primarily provides brand solution services, memorialization products, and industrial products in the United States and Europe.

The majority of Matthews' revenue is derived from its SGK Brand Solutions business, which provides brand development services, printing equipment, creative design services, and embossing tools to the consumer packaged goods and packaging industries.

The company's Memorialization segment, which sells bronze and granite memorials, caskets, and cremation equipment to the cemetery and funeral home industries, also contributes a significant amount.

Most of Matthews' revenue is generated from sales made in the U.S., while European customers also contribute a sizable percentage.

The company was founded in 1850 and is based in Pittsburgh, Pennsylvania.

Three key data points gauge Matthews International 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.

MATW Price

Over the past year, MATW’s share price increased about 59% from $26.15 to $41.53 as of Monday’s market close.

If MATW’s stock trades in the range of $20.00 to $50.00 this next year, its recent $41.53 share price might rise to $51.00 by next year. Of course, MATW’s price could drop about the same $9.47 amount, or more.

My upside estimate of $9.47, however, is $6 below the median of one year target prices estimated by analysts tracking MATW for brokers.

MATW Dividend

Matthews International Corp has paid quarterly dividends since October 21, 1994. Since 2010 MATW has generally increased their Q dividend annually. MATW’s most recent quarterly dividend, paid August 21st to shareholders of record August 4th was $0.23  So, MATW’s  annual dividend payout is projected to be $0.92 and yield 2.22% per Monday’s closing price.

MATW Returns

Adding the $0.92 anticipated annual dividend to MATW’s estimated $9.47 possible price upside, reveals a $10.39 potential gross gain per share for the coming year.

At Monday’s $41.53 closing price, a little under $1000 would buy 24 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.42 per share.

Subtracting that maybe $0.42 brokerage cost from my estimated $10.39 gross gain per share makes a net gain of $9.97 X 24 shares = $239.28 or about a 24% net gain.

This may be the time to pounce on Matthews International Corp shares. But beware, MATW is a remembrance conglomerate. Furthermore, the estimated $22.20 dividend from $1000 invested comes in at  about half the recent single share price. Wait for MATW shares price to pullback to $30.00 before you pounce. The choice is yours.

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

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