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Magic Software Enterprises Ltd (MGIC) was incorporated in 1983 and is headquartered in Or Yehuda, Israel.

The company provides proprietary application development, vertical software solutions, business process integration, information technologies (IT) outsourcing software services, and cloud-based services worldwide. 

Formerly known as Mashov Software Export (1983) Ltd, the company changed its name to Magic Software Enterprises Ltd. in 1991.

Three key data points gauge Magic or any dividend-paying entity, namely:

(1) Price

(2) Dividends

(3) Returns

Those keys also indicate if any company has made, is making, and will make money.

MGIC Price

Magic’s share price rose 86% from $11.11 to $20.69 in the past year.

MGIC Dividends

Magic Software has paid variable semi-annual dividends since October 2012.

The current forward-looking annual dividend of $0.57 yields 2.75% per Wednesday’s $20.69 closing price.

MGIC Returns

Putting it all together, a $2.00 estimated gross gain per share shows up when adding Magic Software’s annual $0.57 dividend to an estimated $1.43 annual price gain. 

That estimated one-year target price, plus the dividend, compose that $2.00 gross gain.

A little under $1000 invested at the recent $20.69 share price would buy 48 shares, which multiply the $2.00 gross gain estimate up to $96.67

Furthermore, about 36% of that $96.00 gain comes from the $27.50 in annual dividends generated from a $1,000 investment.

Besides, the $27.50 annual dividend amounts to $6.81 more than the recent $20.69 single-share price.

(A dividend dogcatcher rule is to only buy a stock that pays an annual dividend from $1000 invested that is greater than the cost of a single share.)

Therefore, you may choose to pounce on Magic Software and its 2.75% dividend yield along with its 13-year dividend record.

The exact track of MGIC’s future share price and dividends will entirely be determined by market action and company finances.

Remember, the best way to track stock performance and dividend payments is through direct ownership of company shares.

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