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Johnson Electric Holdings Ltd, (JEHLY) and its subsidiaries, engage in the manufacturing and selling of electro-mechanical motion systems and solutions.

The company is organized into two business units: Automotive Products Group and Industry Products Group of which Automotive Products Group contributes the vast majority of its total revenue.

Its automotive products include cooling fans, electric power steering motors, headlamp actuators, transmission and driveline actuators. Its industry segment offers medical devices, circuit breakers, power tools, industrial and laboratory equipment, building automation, and optronics.

Geographically, the company generates revenue from North America, the People’s Republic of China, South America, Asia-Pacific, Europe, the Middle East and Africa.

The company was founded in 1959 and is headquartered in Shatin, Hong Kong.

Three key data points gauge Johnson Electric or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three keys also best tell whether any company has made, is making, and will make money.

JEHLY Price

Over the past year, Johnson’s share price fell about 13.4% from $14.50 to $13.33 as of Tuesday’s market close. In the past ten years, the company’s share price has never been less than $10.00 nor higher than $28.87.

If JEHLY shares trade in the range of $11.00 to $15.00 this next year, the recent $13.33 share price might rise by $1.07 to reach $14.40 in a year. Of course, JEHLY's price could also drop about the same $1.07 estimated amount or more.

My $1.07 upside estimate is a guess, based on past performance.

JEHLY Dividend

Johnson Electric has paid variable semi-annual dividends since August 2014.  The most recent $0.56 SA dividend was declared May 20th for shareholders of record July 17th and is to be paid September 18th. A forward-looking $0.78 annual dividend yields 5.85% at Tuesday’s closing price.

JEHLY Returns

Putting it all together, a $1.85 estimated one-year gross gain per share shows up when adding Johnson’s  $0.78 estimated annual dividend to the estimated price upside of $1.07, making that $1.85 gross gain per share.

A little under $1000 buys us 75 shares at the $13.33 share price.

A $10 broker fee (if charged), paid half at purchase and half at sale, might take about $0.13 per share out of the $1.85 annual estimated gross gain to give us a net gain of $1.72 X 75 shares = $129.00 for about a 12.8% estimated net gain for the year.

Furthermore, the $58.50 annual dividend income from $1K invested is over 4.25 times more than Johnson’s $13.33 single share price. By these numbers, Johnson Electric may be an ideal dividend dog.

You might choose to pounce on Johnson Electric Holdings Ltd. It is a 65-year-old semi-annual dividend-paying Hong Kong-based automobile equipment manufacturer with a 10-year record of paying uninterrupted variable semi-annual dividends.

The exact track of Johnson’s 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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