Current Analysis: Trend Micro Inc

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Trend Micro Inc (TMICY) provides antivirus and other security products that protect the flow of information on PCs, file servers, e-mail servers, and the Internet gateway.

Sales have averaged 75% annual growth over the past decade. Customers include British Airways, Merrill Lynch, Microsoft, Pacific Bell, and governmental agencies in the United States and Japan.

The company was incorporated in 1965 and is headquartered in Tokyo, Japan.

Three key data points gauge Trend Micro 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.

TMICY Price

Over the past year, Trend Micro's share price rose 5.6% from $49.43 to $52.20 as of Tuesday’s market close.

If Trend Micro shares trade in the range of $35.00 to $60.00 this next year, its recent $52.20 share price might rise to $54.00 by next year. Of course, Trend Micro’s price could drop about the same $1.80 estimated amount or more.

My annual upside estimate of $1.80 however, is just under the average of Trend Micro’s one-year stock price upsides over the past nine years.

TMICY Dividend

Trend Micro Inc. has paid variable annual dividends since April 2018. Trend Micro’s most recent dividend of $4.87 was declared on December 22nd for shareholders of record on December 29th and the payout was made on April 8.

A forward-looking $4.87 annual dividend yields 9.20% at Tuesday’s $52.20 share price.

TMICY Returns

To put it all together, add the TMICY estimated annual dividend of $4.80 to the estimated price upside of $1.80 to find a $6.60 estimated gross gain for the coming year.

At Monday’s $52.20 price, a little under $1000 would buy 19 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.525 per share.

Subtracting that likely $0.525 brokerage cost from the $6.60 gross gain reveals a net gain of $6.075 X 19 shares = $115.43 for a 11.6% estimated net gain on the year.

You might choose to pounce on Trend Micro Inc. It is a 59-year-old dividend-paying Tokyo, Japan-based computer virus security firm.  Furthermore, its estimated $92.00 annual dividend income from $1k invested is over 1.75 times greater than TMICY’s recent $52.20 share price.

The exact track of Trend Micro Inc's ongoing 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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