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TM Editor's Note: This article discusses one or more penny stocks and/or microcaps. Such stocks are easily manipulated; do your own careful due diligence.

Telefonaktiebolaget LM Ericsson (ERIC) was founded in 1876 and is headquartered in Stockholm, Sweden.

Ericsson provides telecom equipment and services that are primarily used to build and operate mobile networks. The company also licenses its patents to handset manufacturers.

The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. 

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

(1) Price

(2) Dividends

(3) Returns

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

ERIC Price

Ericsson’s share price increased by over 44.2% in the past year from $5.81 to $8.38 as of Thursday’s closing price.

ERIC Dividends

Ericsson has paid variable semi-annual dividends since July 1981. The current forward-looking annual dividend of $0.28 yields 3.39% per Friday’s $8.38  closing price.

ERIC Returns

Putting it all together, a $1.29 estimated gross gain per share shows up when adding Verizon’s annual $0.28 dividend to an estimated $1.01  annual price gain estimated by 6 analysts, totaling that $1.29 gross gain.

A little under $1000 invested at the recent $8.38 price would buy 119 shares, which multiplies the $1.29 gross gain total to $153.51.

Furthermore, about 22% of that $154 gain comes from the $33.90 in dividends generated from your $1,000 investment, and the $33.90 amounts to over 4 times the recent $8.39 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 Ericsson and its 3.39% dividend yield along with its 44-year dividend record.

The exact track of Ericsson's future share prices and dividends will be entirely 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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