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Lenovo Group Ltd, known by the ticker symbol LNVGY,  is a large-cap computer hardware manufacturer, operating in the technology business sector. This is my second report on LNVGY for this Viital portfolio. I last discussed LNVGY on January 4th

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.

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 any dividend equity or fund such as Lenovo Group Ltd (LNVGY):

(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's price per share was $22.22 as of yesterday's market close. One year ago its price was $26.52. Therefore Lenovo's share price fell $4.30 or 16.2% in the past year.

If Lenovo's stock trades in the range of $8.00 to $32.00 this next year, its recent $22.22 share price might rise by $1.28 to reach $24.00 by February 18, 2023. This estimate is  $0.71 below the average annual LNVGY price gain over the past 5 years.

LNVGY Dividends

Lenovo's most recent quarterly dividend of $0.205 was paid December 17th, to shareholders on record as of November  24th.  The LNVGY  Annual estimated dividend payout per share of $0.82 yields 3.69% per yesterday's $22.22. closing price. 

Lenovo has paid variable quarterly dividend payouts generally increasing annually since June, 2001. That stretch will mark 21 years come June.

LNVGY Returns

Adding the $0.82 annual Lenovo forward-looking dividend to its estimated one-year price upside of $1.28 shows a $2.10 potential gross gain, per share, to be reduced by any costs to trade LNVGY shares.  

At yesterday's $22.22 price per share, a little under $1000 would buy 45 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us  $0.22 per share.

Subtract that maybe $0.22 brokerage cost from my estimated $2.10 gross gain estimate per share results in a net gain of $1.88 X 45 shares = $84.60 for a 8.46% net gain on a $999.90 investment.

So it is that Lenovo Group Ltd (LNVGY) shows a possible 8.46% net gain including a 3.69% forward estimated dividend yield. 

Over the next year at this time our $1000 investment in Lenovo Group Ltd (LNVGY) could generate $36.90 in cash dividends alone. Note that a single share of LNVGY stock bought at yesterday's share price of $22.22 is over 1.5 times less than the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is a good time to pickup Lenovo Group Ltd (LNVGY) shares. The estimated next-year dividend from $1K invested is 1.66 times greater than yesterday's single share price of LNVGY. Consider yourself alerted. Its a sign!  

All of the estimates above are speculation based on the past history of Lenovo Group Ltd (LNVGY). Only time and money invested in this stock will determine its market value.