Source: Unsplash 

Lenovo Group Ltd is known by the trading ticker symbol LNVGY and is a member of the technology business sector as a large-cap computer hardware company. This is my first ever report on Lenovo Group for this Vista portfolio or any of the previous five portfolios.

Lenovo is a global technology hardware company with a leading market share in personal computers. 

Its operations are divided into three main business segments: PC and smart devices, mobile, and data center, which account for 80%, 9%, and 10% of sales, respectively. 

The firm has been actively growing its data center business, which primarily sells network servers to enterprise and hyperscale customers, as well as storage equipment through its mainland China joint venture with NetApp. 

Server-related revenue contribution has jumped to 10% of overall sales in fiscal 2020 from 6% in 2015.

Further, it is involved in the retail and service business for consumer electronic products and related digital services; and development, ownership, licensing, and sale of communications hardware and software. 

The company operates in China, the Asia Pacific, Europe, the Middle East, Africa, and the Americas. Lenovo Group Limited was founded in 1984 and is based in Quarry Bay, Hong Kong.

Three key data points gauge dividend equities or funds like Lenovo Group Ltd:

(1) Price

(2) Dividends

(3) Returns

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

LNVGY Price

Lenovo Group Ltd's price per share was $20.50 as of yesterday's market close. One year ago its price was $11.92. So LNVGY's price has increased almost 72% in the past year. 

If Lenovo Group's stock trades in the range of $12 to $24 this next year, its recent $20.50 price might rise by $1.50 to reach $22.00 by July 22, 2022. My estimate is based on the average of five past years of historic price upside.

LNVGY Dividends

Lenovo Group's most recent regular semi-annual dividend payout of  $0.6185 is payable August 17, 2021, and when added to the previous normal semi-annual distribution yields 3.85% based on yesterday's $17.95 closing price and a total annual dividend of $0.79. LNVGY has paid semi-annual variable dividends for 19 years.

LNVGY Returns

Adding the $0.79 annual LNVGY forward-looking dividend to my $1.50 price upside estimate shows a $2.29 potential gross gain, per share, to be reduced by any costs to trade Lenovo Group Ltd shares.  

At yesterday's $20.50 price per share, a little over $1000 would buy 49 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.20 per share.

Subtract that maybe $0.20 brokerage cost from my estimated $2.29 gross gain per share results in a net gain of $2.09 X 49 shares = $102.41 for a 10.10% net gain on a $1,004.50 investment.

So it is that Lenovo Group Ltd shows a possible 10.1% net gain including a 3.85% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Lenovo Group Ltd could generate $38.50 in cash dividends alone. And a single share bought at yesterday's closing price was $20.50! Thus, LNVGY's share price is now 53% less than the dividend income from $1K invested. So, according to the dividend dogcatcher ideal, this is the prime time to pick up Lenovo Group Ltd shares because the dividend from $1k invested exceeds the single share price by over 53%. Consider yourself alerted.

All of the estimates above are speculation based on the past history of  Lenovo Group Ltd. Only time and money invested in this stock will determine its true worth.