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United Microelectronics Corp bears the ticker symbol UMC, and this is my first mention of United for my new Viking Portfolio, but it was selected and my 9th pick for Vital, my seventh Dog of The Week Portfolio.

Founded in 1980, United Microelectronics is the world's third-largest dedicated chip foundry, with a 7% market share in 2021, according to Gartner, after TSMC and GlobalFoundries.

UMC’s headquarters are in Hsinchu, Taiwan, and it 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.

Three key data points gauge

United Microelectronics Corp:

(1) Price

(2) Dividends

(3) Returns

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

UMC Price

UMC’s price per share was $6.96 at Friday’s market close. And, in the past year, UMC’s share price fell by $3.97 or about 36.3%.

If UMC’s stock trades in the range of $5.00 to $10.00 this next year, its recent $6.96 share price might reach $7.70 by next year. My upside increase estimate of $0.74 is $0.015 over the median of one year target estimates from 4 analysts tracking UMC.

UMC Dividends

United’s most recent variable annual dividend of $0.50 per share, casts an annual yield of 7.70%.

UMC Returns

Adding the $0.50 annual estimated UMC dividend to my one-year price upside estimate of $0.74 reveals a $1.24 potential gross gain per share.

At Friday’s $6.96 closing price, a little over $1000 would buy 144 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.07 per share.

Subtract that maybe $0.07 brokerage cost from my estimated $1.24 gross gain makes a net gain of $1.17 X 144 shares = $168.48 for a 8.4% net gain including a 16.85% annual dividend yield.

In one year our $1K investment in shares of United Microelectronics Corp would generate $71.80 in cash dividends. Of course, a single share of UMC stock at Friday's $6.96 price is over 10 times less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to buy UMC shares based on their dividends for the coming year 2023. The current dividend from $1K invested is 10.3 times more than UMC’s single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of United Microelectronics Corp. Only time and money invested in this stock will determine its market value.

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