Photo by Nicholas Cappello on Unsplash
 

Canon Inc. (CAJFF) designs, manufactures, and distributes an extensive range of consumer and electronic products, including copiers, cameras, lenses, and inkjet printers.

The company operates four major business segments: 1) office,  2) imaging systems, 3) medical systems, and industry, and 4) others.

Its global customer base and domestically concentrated operations create inherent currency exposure, which can cause performance to fluctuate.

Canon's headquarters and 28 of its 46 manufacturing plants are in Japan, but nearly 80% of revenue is delivered from international markets. The firm has been expanding into new geographies and markets to mitigate this exposure.

It sells its products under the Canon brand through subsidiaries to retail dealers.

Canon Inc. was founded in 1933 and is headquartered in Tokyo, Japan.

Three key data points gauge Canon Inc. or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

CAJFF Price

Over the past year, Canon’s share price increased about 13% from $21.27 to $24.00 as of Friday’s market close.

If CAJFF stock trades in the range of $20.00 to $30.00 this next year, its recent $24.00 share price might rise to $26.50 by next year. Of course, Canon’s price could drop about the same $2.50 estimated amount or more.

My upside estimate of $2.50, however, is about $0.30 under the average annual price increases shown over the past three years since the Covid markets world markets crash.
 

CAJFF Dividend

Canon has paid irregular and variable semi-annual dividends since August 27, 2004.  Canon’s most recent SA dividend, payable in March to shareholders of record on December 28th, was skipped. The previous skip was in August 2017.

The next likely dividend could measure up to an annual forward-looking yield of 4.5% if paid.
 

CAJFF Returns

Add an $0.95 anticipated annual dividend to Canon’s estimated $2.50 possible price upside, revealing a $3.45 estimated gross gain per share for the coming year.

At Friday’s $24.00 closing price, a little over $1000 would buy 42 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.24 per share.

Subtracting that likely $0.24 brokerage cost from my estimated $3.45 gross gain per share makes a net gain of $3.21 X 42 shares = $134.82 or about a 13.4% net gain.

This might be about time to pounce on CAJFF shares. But beware, Canon is an International Technology conglomerate paying irregular and variable semi-annual dividends for nineteen years. Furthermore, the estimated $45.00 annual dividend from $1000 invested comes in at about 1.9 times greater than the recent $23.00 single share price. The question is how many skipped Canon dividend payments are acceptable? None?

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

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