Daily Stock Analysis: Taitron Components (TAIT)

Taitron Components Inc., known by the ticker symbol TAIT, is a small cap electronics and computer distribution firm in the Technology business sector. This is my first report on TAIT for my Viital stock portfolio and it was the seventeenth stock selected for my Vista portfolio number 6.

Taitron Components Inc is a supplier of original designed and manufactured (ODM) products that include value-added engineering and turn-key solutions. 

human hand holding plasma ball

Image Source: Unsplash

It focuses on providing original equipment manufacturers (OEMs) and contracts electronic manufacturers (CEMs) with ODM products for their multi-year turn-key projects and ODM electronic components. 

Its product offerings range from discrete semiconductors to small electronic devices. The company also distributes brand-name electronic components with a vast inventory available on hand. 

Its Taiwan and China locations provide support for inventory sourcing, purchases, and coordinating the manufacture of ODM Projects and ODM Components.

The company has strategic alliances with Teamforce Co. Ltd.; Grand Shine Management Limited; and Zowie Technology Corporation. 

Taitron Components Incorporated was incorporated in 1989 and is headquartered in Valencia, California

Three key data points gauge any dividend equity or fund such as Taitron Components Inc. (TAIT):

(1) Price

(2) Dividends

(3) Returns

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

TAIT Price

Taitron's price per share was $4.11 as of yesterday's market close. One year ago its price was $2.47. So, TAIT's share price soared about 66.4% in the past year.

If TAIT's stock trades in the range of $2 to $6.00 this next year, its recent $4.11 price could rise by $0.89 to reach $5.00 by October 28, 2022. My estimate is based on the average annual price gain over the past five years.  

TAIT Dividends

Taitron's most recent quarterly dividend of  $0.04 was paid out on August 31, to shareholders. The resulting annual payout of $0.16 yields 3.90% based on yesterday's $19.31 closing price. TAIT has paid quarterly dividends increasing generally annually since May 2016: That is 5 years payouts. 

TAIT Returns

Adding the $0.16 annual estimated TAIT forward-looking dividend to my $0.89 price upside estimate shows a $1.05 potential gross gain, per share, to be reduced by any costs to trade TAIT shares.  

At yesterday's $4.105 price per share, a little over $1000 would buy 244 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.04 per share.

Subtract that maybe $0.04 brokerage cost from my estimated $1.05 gross gain per share results in a net gain of $1.01 X 244 shares = $246.44 for a 24.6% net gain on a $1,002.84 investment.

So it is that Taitron Components Inc. (TAIT) shows a possible 24.6% net gain including a 3.9% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Taitron Components Inc. (TAIT) could generate $39.00 in cash dividends alone. Plus a single share bought at yesterday's closing price was $4.11! Thus, Taitron Components' share price is nearly $35.00 LESS than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now IS the time to pickup TAIT  shares. The estimated next year's dividend from $1k invested is nearly 9.5 times the single share price. Consider yourself alerted. It's a sign! 

All of the estimates above are speculation based on the past history of Taitron Components Inc. (TAIT). Only time and money invested in this stock will determine its market value.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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