Photo by Austin Distel on Unsplash
 

MediaTek Inc. bears the ticker symbol MDTKF, and this is my first mention of MediaTek for this new Viking Portfolio, or for any of my previous seven dog of the week folios.

MediaTek is a fabless semiconductor designer focusing on solutions for smartphones, digital televisions, and connectivity products.

The business is divided into three segments. The first is "mobile," which accounts for over half of sales, where MediaTek is the second-largest third-party supplier of smartphone SoCs to the likes of Xiaomi and Vivo. The second is "smart edge," which accounts for almost 40% of sales, that covers most devices other than smartphones. The third is "power IC" which includes power management products for mobile devices, data centers, connectivity devices, and more.

Incorporated in 1997, MediaTek Inc is headquartered in Hsinchu, Taiwan.

Three key data points gauge MDTKF or any dividend-paying firm:

(1) Price

(2) Dividends

(3) Returns

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

MDTKF Price

MediaTek Inc's price per share was $7.30 at Friday’s market close. In the past year, MDTKF share price stayed about the same.

If MDTKF stock trades in the range of $6.00 to $9.00 this next year, its recent $7.30 share price might reach $8.00 by next year. That upside estimate of $0.70 is still $4.61 under the valuation from historic multiples calculated by YCharts.
 

MDTKF Dividend

MediaTek Inc's most recent annual dividend of $2.46 cast a forward annual yield of 33.7%.
 

MDTKF Returns

Adding a more realistic  $1.32 annual estimated MDTKF dividend to my one-year price upside estimate of $0.70 reveals a $2.02 potential gross gain estimate per share.

At Friday’s $7.30 closing price, a little over $1000 would buy 137 shares.

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

Subtracting that maybe $0.07 brokerage cost from my estimated $2.02 gross gain makes a net gain of $1.95 X 137 shares = $267.15 for a 26.7% net gain including the 18% annual dividend yield.

In the next year, our $1K investment in shares of MediaTek Inc could generate $13.20 in cash dividends. Furthermore, a single share of MDTKF at Thursday’s $7.30 price is about 2 times less than the estimated annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a proper time to maybe buy MediaTek Inc shares, based on their dividends for 2023. The current dividend from $1K invested is 1.8 times higher than the MDTKF single share price. Consider yourself alerted.

Now is the time to consider MediaTek Inc shares.

All of the estimates above are speculation based on the past history of investment in shares of MediaTek Inc. Only time and money invested in this stock will determine its future market value.

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