Magic Software Enterprises Ltd, ticker MGIC, a small-cap information technology services company in the technology business sector, is the fifth of five technology candidates vying for the first slot in my Viking folio. This is not my first report on MGIC. I have discussed Magic Software Enterprises Ltd previously and I selected it as my 45th pick for Viital,  my seventh, portfolio.

Magic Software Enterprises Ltd is a software development company. The company's operating segments include Software Services, and IT Professional Services. It generates maximum revenue from the IT Professional Services segment.

Magic’s IT Professional Services offer advanced and flexible IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services.

Geographically, it derives a majority of revenue from the United States and also has a presence in Israel; Europe; Japan, and Other countries.

The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name to Magic Software Enterprises Ltd. in 1991.

Magic Software Enterprises Ltd. was incorporated in 1983 and is headquartered in Or Yehuda, Israel.

Three key data points gauge Magic Software Enterprises Ltd:

(1) Price

(2) Dividends

(3) Returns

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

MGIC Price

Magic’s price per share was $15.38 at today’s market close.  Magic’s share price fell by $4.04 or about 20% in the past year.

If Magic’s stock trades in the range of $12.00 to $20.00 this next year, its recent $15.38 share price might reach $16.50 by next year. That upside increase of $1.12 is equal to Magic’s historic ten year average price upside.

MGIC Dividends

Magic’s most recently declared semi-annual dividend of $0.29 per share makes an annual dividend of $0.51 and casts a yield of 3.32%.

MGIC Returns

Adding the $0.51 annual MGIC dividend to my one-year price upside estimate of $1.12 shows a $1.63 potential gross gain per share.

At today’s $15.38 closing price, a little under $1000 would buy 65 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us $0.15 per share.

Subtract that maybe $0.15 brokerage cost from my estimated $1.63 gross gain per share results in a net gain of $1.48 X 65 shares = $96.20 for a 9.6% net gain including a 3.32% annual yield.

In a year our $1K investment in shares of Magic Software Enterprises Ltd could generate $33.20 in cash dividends. Of course, a single share of MGIC stock at today's $15.38 price is less than half of the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is good time to buy MGIC shares based on their dividends for the year 2022. The dividend from $1K invested is 2.16 times more than yesterday’s single share price. Consider yourself alerted. Now is the time.

All of the estimates above are speculation based on the past history of Magic Software Enterprises Ltd. Only time and money invested in this stock will determine its market value.

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