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TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Pirelli & C SpA (PLLIF) designs develops, manufactures, and markets tires - for motor vehicles, industrial vehicles, bicycles, and motorcycles. The company is focused on the Prestige and Premium segments. Geographically it derives the majority revenue from Europe and Turkey.

The company also provides Run Flat and Seal Inside specialties that enable cars to continue driving after a puncture; Pirelli Noise Cancelling System for reducing noise by rolling; and Elect, a line of tires for electric vehicles.

The company was incorporated in 1872 and is headquartered in Milan, Italy.

Three key data points gauge Pirelli 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.

PLLIF Price

Pirelli’s share price rose about 2.4% in the past year from $5.75 to $5.89 as of Monday’s market close.

In the past 3 years the company’s share price has ranged from $4.15 to $7.03, its all-time high, reached as of March 1, 2022.

If the company conforms to the average annual price gain over the past 5 years, price could grow $0.46 to $6.35.

PLLIF  Dividend

Pirelli has paid variable annual dividends since May 22, 2019.

The company’s most recent dividend of $0.21 was declared March 6th for shareholders of record prior to June 24th, and the payout was made June 26th.

The forward-looking annual dividend of $0.21 yields 3.59% per Monday’s closing price.

PLLIF Returns

Putting it all together, a $0.67 estimated gross gain per share shows up by adding PLLIF’s annual $0.21 dividend to the estimated $0.46 annual price gain, totaling that $0.67 gross amount.

A little over $1000 buys 170 shares at Monday’s $5.89 share price.

A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.06 per share out of the $0.67 gross gain to give us a net $0.61 amount per share to multiply by 170, to equal $103.70 for about a 10.4% estimated net gain on the year.

Furthermore, the $35.90 annual dividend income from $1k invested in PLLIF is over 6 times greater than the single-share price. By these numbers, Pirelli & C SpA may be an ideal dividend dog.

Therefore, you may choose to pounce on PLLIF as a 153-year-old annual dividend-paying road vehicle tire manufacturer with a 6-year dividend record.

The exact track of Pirelli’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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