Image Source: Pixabay

SoftBank Corp (SOBKY) is an established, telecommunications services provider in Japan owning a mobile network with around 50 million mobile customers and 24% market share.

It also provides some fixed line services, which are mostly resold so are low margin. The company also owns 32.4% of LY Corp, and SoftBank and LY Corp each own 32% of PayPay so SoftBank consolidates PayPay.

SoftBank Group sold 33.5% of the SoftBank Corp in an IPO in 2018 and sold down further to a 42% holding in 2020.

The company was formerly known as SoftBank Mobile Corp. and changed its name to SoftBank Corp. in May 2015.

SoftBank Corp. was founded in 1984 and is headquartered in Tokyo, Japan.

Three key data points gauge

SoftBank 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.

SOBKY Price

Over the past year, SoftBank share price rose 15.4% from $11.30 to $13.04 as of Wednesday’s market close.

If SoftBank shares trade in the range of $10 to $15 this next year, its recent $13.04 share price might rise to $14.50 by next year. Of course, SOBKY’s price could drop about the same $1.46 estimated amount, or more.

My annual upside estimate of $1.46 however, is $0.28 less than the recent one year price upside over the past year.

SOBKY Dividend

SoftBank has paid variable semi-annual dividends since December, 2019. SoftBank’s recent SA dividend of $0.29 was declared September 13th to shareholders of record September 28th. The payout was made December 20th.

A forward looking $0.60 annual dividend yields 4.6% at Wednesday’s $13.04 share price.

SPOBKY Returns

To put it all together, add SoftBank Corp’s estimated annual dividend of $0.60 to the estimated price upside of $1.46 to find a $2.06 gross gain.

At Wednesday’s $13.04 share price, a little over $1000 would buy 77 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about  $0.13 per share.

Subtracting that likely $0.13 brokerage cost from the $2.06 gross gain produces a net gain of $1.93 X 77 shares = $148.61 for a 14.8% estimated net gain.

You might choose to pounce on SoftBank Corp. It is a 40 year old dividend paying Tokyo based telecom.  Furthermore, the estimated $46.00 annual dividend income from $1k invested is over 3.5 times greater than SOBKY’s recent $13.04 single share price.

The exact track of the Softbank Corp’s 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.

More By This Author:

Current Analysis: PLDT
Current Analysis: KDDI Corp
Current Analysis: Advanced Info Service (AVIFY)