New Report: ASE Technology

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ASE Technology Holding Co Ltd, known by the ticker symbol ASX, is a large-cap semiconductor firm, operating in the technology business sector. This is my first report on ASX for this Viital portfolio or any of my previous six portfolios.

ASE Technology Holding Co Ltd is a semiconductor assembly and testing firm. The company operates in three segments: Packaging, Testing, and Electronic Manufacturing Services (EMS). 

Of these, packaging services contribute the most revenue. It involves packaging bare semiconductors into completed semiconductors with improved electrical and thermal characteristics.

The Testing Segment includes front-end engineering testing, wafer probing, and final testing services. 

In the EMS segment, the company designs manufacture, and sells electronic components and telecommunication equipment motherboards. 

The company is based in Taiwan but garners over half its sales from firms in the United States.

The company was incorporated in 1984 and is headquartered in Kaohsiung, Taiwan.

Three key data points gauge any dividend equity or fund such as ASE Technology Holding:

(1) Price

(2) Dividends

(3) Returns

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

ASX Price

ASE's price per share was $7.20 as of yesterday's market close. One year ago its price was $7.92. Therefore, ASE's share price fell $0.72 or a little over 9% in the past year. 

If ASE's stock trades in the range of $6.50 to $9.00 this next year, its recent $7.20 share price might rise by $1.15 to reach $8.35 by April 5, 2023. My $1.15 estimate is $0.017 below the median of target price estimates from three analysts covering ASX for brokerage firms. 

ASX Dividends 

ASE's most recent annual dividend of $0.30 was paid on October 7th to shareholders on record as of September 3rd.  Assuming the same A rate holds true in the coming year, the annual dividend payout per share of $0.30 yields 4.17% at yesterday's $7.20 closing price. 

ASE has paid variable annual payouts since August 2002 That stretch marks 15 years in August. 

ASX Returns

Adding the $0.30 ASE Technology Holding annual dividend to the estimated one-year price upside of $1.15 shows a $1.45 potential gross gain, per share, to be reduced by any costs to trade ASX shares.  

At yesterday's $7.20 price per share, a little over $1000 would buy 139 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.07 per share.

Subtract that maybe $0.07 brokerage cost from my estimated $1.45 gross gain estimate per share results in a net gain of $1.38 X 139 shares = $191.82 for a 19.18% net gain on a $1,000.80 investment.

So it is that ASE Technology Holding Co Ltd (ASX): shows a possible 19.18% net gain including a 4.17% forward-looking dividend yield. 

Over the next year at this time, our $1000 investment in ASE Technology Holding Co Ltd could generate $41.70 in cash dividends alone. Note that a single share of ASX stock bought at yesterday's price of $7.20 is about 5.75 times less than the anticipated dividend income from our $1000.00 invested. So, by my dogcatcher ideal, now may be the time to buy ASE Technology Holding Co Ltd shares. The estimated next-year dividend from $1K invested is over 5.79 times yesterday's single share price. Consider yourself alerted. It's a sign! 

All of the estimates above are speculation based on the past history of ASE Technology Holding Co Ltd (ASX). 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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