Today I'm reviewing a large-cap software - application firm by the name of Open Text Corporation. Its trading ticker symbol is OTEX.

Open Text Corp develops and sells enterprise information management (EIM) software. The company offers EIM software that allows clients to archive, aggregate, retrieve, and search unstructured information the better to manage it.

In addition, the company has customer support programs that access software upgrades, a knowledge base, discussions, product information, and an online posting and review of trouble tickets. 

Further, it offers professional services, training, and integration of its product offerings into the customer's systems; and cloud services. 

The company serves organizations, mid-market companies, and government agencies worldwide. It has strategic partnerships with SAP SE, Microsoft Corporation, Oracle Corporation, Accenture plc, Deloitte Consulting LLP, and others. 

Open Text Corporation was founded in 1991 and is headquartered in Waterloo, Canada.

I use three key data points to gauge the value of any dividend equity or fund like Open Text Corporation (OTEX): 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

OTEX Price

OTEX's price per share was $38.98 at Friday's market close. A year ago its price was $31.97 for a gain of $7.01 per share.  

Assuming OTEX's price will trade in the range of $32 to $50 next year, that $7.01 gain could repeat itself and move its current $38.98 price to $45.99 by mid- August, 2019. 

OTEX Dividends

OTEX's most recent quarterly dividend was $0.1518declared August 2 and payable September 21st.

At that most recent quarterly pay rate, its 2018 annual dividend is calculated at $0.61 yielding 1.6% at Friday's closing $38.98 price.

Gains For OTEX?

Adding the $0.61 estimated annual dividend to the $7.01 year over year theoretical price gain for Valero makes a $7.62gross annual per share gain, which will be reduced by costs to trade the shares.  

A little over $1,000.00 invested today at the $38.98 recent price buys 26 Open Text Corporation (OTEX) shares. 

A $10 broker fee paid half at purchase and half at sale costs about $0.22 per share, subtracting that $0.22 brokerage cost from the estimated $7.62 gross gain leaves a net gain of $7.40 X 26 shares = $192.40 or a 19% net gain on a $1013.48 investment.

Therefore, Open Text Corporation , whose trading ticker symbol is OTEX, now shows a possible 19% net gain including a 1.6% dividend yield. 

Seventeen brokers cover this stock:

Seven say "buy"

Eight say VLO will "outperform" its peers.

One rates it "hold".

One says "sell"

So, the analyst consensus recommendation number is 1.824 or "outperform".

The price target set by those seventeen brokers is $1.77 below the $45.99 year over year price target I named. 

Y Charts has data too. Y Charts has rated OTEX "neutral" for an overall "Y" rating; it has "average" for a value score, and "strong" for a Fundamental mark, and rates OTEX "29.69% over" for aHistoric Valuation score based on a historic $30.06 valuation per share.

So, you could look at all those positive numbers this way, Open Text Corporation (OTEX) has made money, is making money, and could net a 19%gain including a 1.6% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. Actual results remain to be seen. Results could turn out to be far higher or lower. More study is required for you to determine ifOpen Text Corporation (OTEX) is worth your time and money.