Today I'm reviewing a large-cap semiconductor equipment & materials firm by the name of Applied Materials, Inc. Its trading ticker symbol is AMAT.

Applied Materials Inc is a supplier of semiconductor manufacturing equipment. It provides equipment, services and software to the semiconductor, flat panel display, solar photovoltaic and related industries.

It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. 

The Semiconductor Systems segment develops, manufactures, and sells a range of manufacturing equipment used to fabricate semiconductor chips or integrated circuits.

The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity. 

The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays, organic light-emitting diodes, and other display technologies. 

The company serves manufacturers of semiconductor wafers and chips, liquid crystal and organic light-emitting diode displays, and other electronic devices. 

Applied Materials, Inc. was founded in 1967 and is headquartered in Santa Clara, California.

I use three key data points to gauge the value of any dividend equity or fund like Applied Materials, Inc. (AMAT): 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keyswill 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. 

AMAT Price

Applied Material's price per share was $48.26 at yesterday's market close. A year ago its price was $43.78 for a gain of $4.48 per share.  

Assuming AMAT's price will trade in the range of $42 to $62 again next year, that $4.48 gain could repeat itself and move AMAT's current $48.26 price to $52.74 by mid- August, 2019. 

AMAT Dividends

Applied Material's most recent quarterly dividend was $0.20declared June 7 and payable September 13th.

At that most recent quarterly pay rate, its 2018 annual dividend is calculated at $0.80 yielding 1.6% at yesterday's closing $48.26 price.

Gains For AMAT?

Adding the $0.80 estimated annual dividend to the $4.48 year over year theoretical price gain for Applied Materials makes a $5.28gross annual per share gain, which will be reduced by costs to trade the shares.  

A little over $1,000.00 invested today at the $48.26 recent price buys 21 Applied Materials, Inc. (AMAT) shares. 

A $10 broker fee paid half at purchase and half at sale costs about $0.48 per share, subtracting that $0.48 brokerage cost from the estimated $5.28 gross gain leaves a net gain of $4.80 X 21 shares = $100.80 or a 10% net gain on a $1013.46 investment.

Therefore, Applied Materials, Inc., whose trading ticker symbol is AMAT, now shows a possible 10% net gain including a 1.6% dividend yield. 

Twenty-seven brokers cover this stock:

Eighteen say "buy"

Four say AMAT will "outperform" its peers.

Five rate it "hold".

So, the analyst consensus recommendation number is 1.519 or "outperform".

The price target set by those seventeen brokers is $12.00 over the $52.74 year over year price target I named. 

Y Charts has data too. Y Charts has rated AMAT "neutral" for an overall "Y" rating; it has "average" for a value score, and "strong" for a Fundamental mark, and rates AMAT "5.26% under" for aHistoric Valuation score based on a historic $50.94 valuation per share.

So, you could look at all those positive numbers this way, Applied Materials, Inc. (AMAT) has made money, is making money, and could net a 10%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 ifApplied Materials, Inc. (AMAT) is worth your time and money.