United Microelectronics Forges Wafers & New Business

Assuming UMC's price will continue to trade in the range of $2.00 to $4.00 next year, its price could grow another $0.68 from $2.70 to $3.38 by mid- May, 2019. 

UMC Dividends

United Microelectronics's most recently declared variable annual dividend was $0.08 per share declared in July, 2017 and paid inAugust.  That $0.08 annual dividend if paid in 2018 yields 2.96% at yesterday's $2.70 stock price.

Gains For UMC?

The $0.68 estimated year over year price gain plus an anticipated dividend of  $0.08 makes a projected gross annual gain of $0.76 per share, which will be reduced by the costs to trade these shares.  

$1,000.00 invested today at the $2.70 price buys 370 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts about $0.3 per share. Taking that $0.03 brokerage cost out of the estimated $0.76 gross gain per share leaves a net gain of $0.73 X 370 shares = $270.10 or a 27% potential net gain on a $999.00 investment.

Therefore, United Microelectronics Corporation (whose ticker symbol is UMC), now shows a possible 27% net gain including a 2.96% dividend yield. 

Three analysts cover this stock. One says buy; one says hold, and the third says underperform. Their consensus rating adds up to 2.7 or hold. 

Unfortunately, Y Charts has no yet rated UMC for an overall "Y" rating and shows "Insufficient Data" for a Value score. YCharts does rank it strong with a 8 out of 10  possible Fundamental points and shows a  Historic Valuation score as 9.49% overvalued. based on a $2.46 historic value.

You could look at all those numbers like this: United Microelectronics Corporation (UMC) has made money, is making money, and could net a 27% net gain next year including  2.96% dividend yield

Those forward-looking numbers were conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if Microelectronics Corporation (UMC) is worth your time and money.

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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