Sankyo Co Ltd (SKXJF) manufactures and sells pachinko and pachislot machines to the gambling industry. Pachinko machines, gambling devices with pinball-like characteristics, are sold to pachinko parlors throughout Japan. It sells its products under the SANKYO, Bisty, and JB brands.

Pachinko parlors allow users to purchase small steel balls, which are utilized in pachinko machines under the objective of winning more balls that can then be exchanged for prizes. Pachislot machines, which are a similar gambling device as pachinko and slot machines, are also sold to gambling parlors throughout Japan. The company generates the vast majority of its revenue in Japan.

The company was incorporated in 1960 and is headquartered in Tokyo, Japan.

Three key data points gauge Sankyo Co 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.

SKXJF Price

Over the past year, Sankyo’s share price rose about 31.4% from $32.45 to $42.65 as of Friday’s market close.

If Sankyo’s stock trades in the range of $30.00 to $55.00 this next year, its recent $42.65 share price might rise to $48.00 by next year. Of course, Sankyo’s price could drop about the same $5.35 estimated amount, or more.

My upside estimate of $5.35, however, is about half Sankyo’s past-year price gain.

SKXJF Dividend

Sankyo has paid variable Semi-Annual dividends since June 30, 2014. It did not pay a dividend in 2019. Sankyo’s recently declared  SA dividend, of $1.00, is payable to shareholders of record as of March 28, 2024. A pay date has not been announced but will likely be In June 2024. The forward looking $2.00 annual dividend yields 4.69% at Friday’s $42.65 share price,

SKXJF Returns

Putting it all together, we add the estimated forward looking annual dividend of  $2.00 to my estimated price upside of $5.35 and find a $7.35 gross gain.

At Friday’s $42.65 closing price, a little under $1000 would buy 23 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.43 per share.

Subtracting that likely $0.43 brokerage cost from the $7.35 estimated gross gain per share produces a net gain of $6.92 X 23 shares = $159.16 or a 16% net gain.

You might choose to pounce on Sankyo Co Ltd shares. Furthermore the estimated $46.90 dividend income from $1k invested is $4.25 greater than Friday’s price of a single share.

SKXJF is a sixty-three  year old gambling machine supplier in Japan.The fate of Sankyo’s ongoing future price and dividend is yet to be learned.

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

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