Current Analysis: Skyworks Solutions
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Skyworks Solutions (SWKS) produces semiconductors for wireless handsets and other devices that are used to enable wireless connectivity.
Its main products include power amplifiers, filters, switches, and integrated front-end modules that support wireless transmissions.
Skyworks' customers are mostly large smartphone manufacturers, but the firm also has a growing presence in non-handset applications such as wireless routers, medical devices, and automobiles.
It sells its products through a direct sales force, electronic component distributors, and independent sales representatives.
Skyworks Solutions, Inc. was founded in 1962 and is based in Irvine, California.
Three key data points gauge Skyworks Solutions or any dividend-paying firm.
The key three are:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys also best tell whether any company has made, is making, and will make money.
SWKS Price
Over the past year, Skywork's share price tumbled about 10.7% from $102.62 to $91.66 as of Thursday’s market close.
If SWKS shares trade in the range of $85.00 to $115.00 this next year, its recent $91.66 share price might rise to $100.00 by next year. Of course, Skyworks price could drop about the same $8.34 estimated amount or more.
My annual upside estimate of $8.34 however, is in-line with the median of one-year target prices estimated by 21 analysts tracking SWKS.
SWKS Dividend
Skyworks has paid quarterly dividends increasing annually since June 2014.
Skyworks most recent Q dividend of $0.68 was declared on April 30th for shareholders of record on May 20th and the dividend pay dates is June 11.
The forward-looking $2.72 annual dividend yields 2.97% at Thursday’s $91.66 share price.
SWKS Returns
To put it all together, add Skyworks projected annual dividend of $2.72 to the estimated price upside of $8.34 to get a $11.06 estimated gross gain for the coming year.
At Thursday’s $91.66 share price, a little over $1000 would buy 11 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.91 per share.
Subtracting that unlikely $0.91 brokerage cost from the $11.06 estimated gross gain reveals a net gain of $10.15 X 11 shares = $111.65 for about an 11% estimated net gain on the year.
However, the $29.70 annual income from $1K invested is $61.96 less than the single share price. Skyworks share price needs to drop to $52 with no change in dividend to qualify as an ideal dividend dog.
You might choose to pounce on Skyworks Solutions Inc. It is a 62-year-old dividend-paying Irving, California-based semiconductor and equipment manufacturer that has a 10-year track record paying quarterly dividends. The dog catcher cautions your to wait for a significant pullback before investing.
The exact track of Skyworks future price and dividend will entirely 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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