Daily Stock Pick: Monotype Imaging Holdings
A portfolio of stocks I started last week, named Volio Folio, holds 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per week pace) since 2014. Five portfolios = V for Volio!
I'm reviewing today the fourth of five technology sector stocks this week striving to be picked to join the Volio folio collection. This would be the second pick for Volio.
The technology stock sector has nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, information technology and services, to internet, scientific instruments, software, solar, and all such techno-marvels.
My subject today is a small-cap software - application firm named Monotype Imaging Holdings IncTheir trading ticker symbol is TYPE. I previously reported on this company on November 8, 2018, and May 3, 2019, for the Ivy portfolio, It has yet to be chosen.
Monotype Imaging Holdings Inc is a provider of typeface, technology, and expertise for creative applications and consumer devices, headquartered in Woburn, Massachusetts.
Its business is organized in two units with one serving creative professionals, and the other serving original equipment manufacturers.
The former helps customers provide branded or personalized content across multiple devices and mediums. The latter provides manufacturers and software vendors solutions to deliver consistent user experiences.
The company derives revenue from licenses and per-unit royalties. A majority of the firm's revenue is generated in the United States, and the rest in the United Kingdom, Germany, Japan, and the rest of Asia.
I use three key data points to gauge dividend-paying equities or funds like Monotype Imaging Holdings Inc (TYPE):
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest or not. Those three basic keys, however, best tell whether a company has made, is making, and will make money.
TYPE Price
Monotype's price per share closed at $19.78 yesterday. A year ago its price was $20.15. In a year its price fell $0.37 or 1.8%.
Assuming Monotype's stock trades in the range of $16 to $21.00 this year, Monotype's recent $19.78 price could rise by $0.22 and get to $20.00 by mid-September 2020.
TYPE Dividends
Monotype's latest declared quarterly dividend was $0.116 paid July 19th.
That $0.116 Q payout added to the previous three equates to $0.46 annually and yields2.35% based on yesterday's $19.78 closing price.
TYPE Gains?
Adding the $0.46 annual estimated dividend to my $0.22 estimate of Monotype's price upside shows a $0.68 potential gross gain, per share, which will be reduced by costs to trade these shares.
Say we put a little under $1,000.00 today at the $19.78 recent stock price, we'd buy 50 shares of Monotype Imaging Holdings Inc shares.
A $10 broker fee paid half at purchase and half at sale will cost us $0.20 per share.
Subtract that $0.20 brokerage cost from the estimated $0.68 gross estimated gain leaves a net gain of $0.48 X 51 shares = ($24.48) or a 2.45% net gain on a $1,008.78 investment.
Therefore, Monotype Imaging Holdings Inc, whose trading ticker symbol is TYPE now shows a possible net gain of 2.45% including a 2.35% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if Monotype Imaging Holdings Inc. is worth your time and money.
Disclosure: This article was compiled by Rydlun & ...
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