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Sumitomo Corp (SSUMY) is a Japanese conglomerate that operates various business units: metal products; transportation and construction systems; environment and infrastructure; media, ICT, and lifestyle-related goods and services; and mineral resources, energy, chemical, and electronics.

The businesses develop, manufacture, distribute, and service steel sheets, steel tubular products, nonferrous metal products, ocean and aerospace equipment, railway cars, automobiles, construction equipment, lifestyle and food retail goods, materials and supplies, mineral resources, energy, electronics, and life sciences.

The group also offers services in infrastructure projects, real estate construction, and general construction and development projects.

Sumitomo Corporation was incorporated in 1919 and is headquartered in Tokyo, Japan.

Three key data points gauge Sumitomo Corporation 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.

SSUMY Price

Over the past year, Sumitomo’s share price increased about 6.75% from $12.69 to $19.63 as of Thursday’s market close.

If SSUMY stock trades in the range of $12.00 to $25.00 this next year, its recent $19.63 share price might rise to $22.50 by next year. Of course, Sumitomo’s price could drop about the same $2.87 estimated amount or more.

My upside estimate of $2.87, however, is about the amount of average  annual share price gain over the past three years,

SSUMY Dividend

Sumitomo Corporation has paid variable semi-annual dividends since July 10, 2003. Sumitomo’s most recent SA dividend, paid on July 3 to shareholders of record on March 30th, was $0.40

That and one more SA measures up to $0.825 annually for a forward-looking yield of 4.2%.

SSUMY Returns

Add the $0.83 anticipated annual dividend to Sumitomo’s estimated $2.87 possible price upside, reveals a $3.70 estimated gross gain per share for the coming year.

At Thursday’s $19.63 closing price, a little over $1000 would buy 51 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.20 per share.

Subtracting that likely $0.20 brokerage cost from my $3.70 estimated gross gain per share makes a net gain of $3.50 X 51 shares = $178.50 or about a 17.8% net gain.

This could be the time to pounce on Sumitomo Corporation shares. And beware, Sumitomo Corporation, is a Japanese Conglomerate. Furthermore, the estimated $42.00. annual dividend from $1000 invested comes in at over 2 times greater than the recent $19.63 single share price. The question is really what happens next to the Sumitomo Corporation dividend payout and stock price?

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

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