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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.

United Microelectronics (UMC) is the world's third-largest dedicated chip foundry, with a 7% market share in 2023 after TSMC and GlobalFoundries.

UMC operates 12 fabs in Taiwan, Mainland China, Japan, and Singapore, with additional sales offices in Europe, the U.S., and South Korea.

UMC features a diverse customer base including Texas Instruments, MediaTek, Qualcomm, Broadcom, Xilinx, and Realtek, supplying a wide range of products applied in communications, display, memory, automotive and more. UMC employs about 20,000 people.

United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.

Three key data points gauge UMC 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.

UMC Price

Over the past year, United’s share price was up 3.6% as of Wednesday’s market close.

In the past 10 years, the company’s share price has rarely been less than $1.70 nor higher than $12.70, its all-time high reached in December 2021.

If shares trade in the range of $7.00 to $9.00 this next year, the recent  $7.70 United share price might grow to $8.08. Of course, UMC's price could also drop about the same $0.38 estimated amount or more.

My $0.38 price upside estimate is based on UMC’s average one-year price gains over the past 16 years. Four analysts think the price track will be down $0.16.

UMC Dividend

United Microelectronics has paid variable annual dividends since August 2010. The company’s most recent dividend of $0.46 was declared June 13th for shareholders of record July 2nd and the payout was made August 7th.

The $0.46 A dividend yields 5.92%, as of today’s (Wednesday’s) closing price.

UMC Returns

Putting it all together, an $0.84 estimated annual gross gain per share shows up by adding UMC’s annual $0.46 dividend to the estimated price upside of $0.38, totaling that $0.84 gross gain.

Slightly over $1000 buys 130 shares at Wednesday's $7.70 price.

A $10 broker fee (if charged), taken half at purchase and half at sale, might take about $0.085 per share out of the $0.84 gross gain to give us a net gain of $0.775 X 130 shares = $98.15 for about a 9.8% estimated net gain for the year.

Furthermore, the $59.20 annual dividend paid from $1k invested is over 7.5 times more than the $7.70 single share price. By these numbers, UMC might be an ideal dividend dog.

Thus, you might choose to pounce on United Microelectronics.  It is a 44-year-old Annual dividend-paying Taiwan-based chip fabricator with a 14-year annual dividend record.

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

Remember the true value of any stock is best realized through personal ownership of shares.

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