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Magic Software Enterprises  Ltd (MGIC) 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.

IT Professional Services segment offers 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.

The company was incorporated in 1983 and is headquartered in Or Yehuda, Israel.

Three key data points gauge Magic 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.

MGIC Price

Magic’s price grew almost 16% in the past year from $11.45 to $13.28 as of Tuesday’s market close.

In the past 3 years, the company’s share price has ranged from $19.73 to $8.27. However, the all-time high price of $33.00 was reached back in February 2000.

Should MGIC share prices conform to somewhere between he average $1 per year price gains charted over the past five years and the median $2.72 gain estimated by one analyst tracking MGIC for brokers,  its share price might grow to $15.00 in the coming year.

MGIC Dividends

Magic Software has paid variable semi-annual dividends since October 2012. The company’s most recent SA dividend of $0.33 was declared March  11th for shareholders of record prior to April 22nd. The forward-looking annual dividend of $0.65 yields 4.92% per Tuesday’s closing price.

Magic Returns

Putting it all together, a $2.37 estimated gross gain per share shows up by adding MGIC's annual $0.65 dividend to an estimated $1.72 estimated annual gross price gain, totaling that $2.37 gross gain amount.

A little under $1000 buys 75 shares at Tuesday’s $13.78 share price.

So, a $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.1333 per share out of the $2.37 gross gain to give us a $2.237 net amount per share to multiply by 75 shares. That result comes to $167.75 for about a 16.8% estimated net gain in the coming year.

Furthermore, $49.20 in annual dividend income from your $1,000 investment in Magic Software Enterprises Ltd is over 3.5 times greater than the $13.28 single-share price. By these numbers, MGIC could be considered an ideal dividend dog by my dog catcher standards.

Therefore, you may choose to pounce on MGIC as a 34-year-old semi-annual dividend-paying Israeli software company with a 13-year  dividend payment record.

The exact track of MGIC’s future price and dividend will entirely be determined by market action and company finances.

Remember, the best way to track stock performance and dividend payments is through direct ownership of company shares.

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