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Magic Software Enterprises Ltd. with the ticker MGIC, is a Small-cap information technology services company operating, as I said, in the technology business sector. This is the fifth of five technology candidates competing for the forty-fifth slot in the Viital folio. It is my first ever report on MGIC for my Viital portfolio or for any of my previous portfolios.

Magic Software Enterprises Ltd is a software development company. The company's two operating segments are Software Services and IT Professional Services.

It generates maximum revenue from the IT Professional Services segment which offers advanced and flexible IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services.

Geographically, MGIC derives a majority of revenue from the United States but also has a presence in Israel; Europe; Japan, and Other countries.

The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name to Magic Software Enterprises Ltd. in 1991.

Magic Software Enterprises Ltd. was incorporated in 1983 and is headquartered in Or Yehuda, Israel.

Three key data points gauge any dividend equity or fund such as Magic Software Enterprises Ltd :

(1) Price

(2) Dividends

(3) Returns

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

MGIC Price

Magic’s price per share was $18.65 as of yesterday's market close.  One year ago it’s price was $20.10. Thus, MGIC share price fell $1.45 or about 7.2% in the past year.

If MGIC’s stock trades in the range of $10.00 to $30.00 this next year, its recent $18.65 share price might rise by $4.35 to reach $23.00 by next year. My $4.35 upside estimate is $5.00 below the median of one-year price targets from 2 analysts tracking MGIC for brokers.
 

MGIC Dividends

Magic’s most recently declared semi-annual dividend of $0.216 was paid April 7th, to shareholders on record as of March 23rd.

Since January 25, 2010, MGIC has paid semi-annual  variable dividends.  The current forward looking annual dividend of $0.43 projects an annual yield of 2.32% as of yesterdays $18.65 share price.
 

MGIC Returns

Adding the $0.43 MGIC annual dividend to my estimated one-year price upside estimate of $4.35 shows a $4.78 potential gross gain, per share, to be reduced by any costs to trade MGIC shares.

At yesterday's $18.65 closing price, a little over $1000 would buy 54 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.19 per share.

Subtract that maybe $0.19 brokerage cost from my estimated $4.78 gross gain estimate per share results in a net gain of $4.59 X 54 shares = $247.86, for a 24.75% net gain including a 2.32% forward looking annual dividend yield.

Over the next year our $1K investment in MGIC shares should generate $23.20 in cash dividends. Of course, a single share of MIXT stock bought at yesterday's $18.65 price is over $4.55 LESS than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this prime time to pick up Magic Software Enterprises Ltd shares based on their forward looking dividends for the year 2022. The forecast annual dividend from $1K invested is $4.55 greater than yesterday’s single share price. Consider yourself alerted. It's a sign. Now IS the time.

All of the estimates above are speculation based on the past history of Magic Software Enterprises Ltd. Only time and money invested in this stock will determine its market value.

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