Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.

This week my latest portfolio seeks a high-yield and growing stock in the technology sector. That sector includes nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health and information technology and services to the internet, scientific instruments, software, solar and all such technological enterprises.

Today I'm reviewing a software - application firm. It's a small-cap stock with market capital of between $200 million and $2 billion. Its name is Magic Software Enterprises Ltd.It's trading ticker symbol is MGIC.

Magic Software Enterprises Ltd is a software development company. It does application development, business process integration platforms, vertical software solutions and professional services to develop mobile and cloud-based business applications, namely software for business.

It serves oil and gas, telecommunications, financial, healthcare, industrial sectors, as well as public institutions and international agencies.

The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name to Magic Software Enterprises Ltd. in 1991.

Magic Software Enterprises Ltd. was founded in 1983 and is headquartered in Or Yehuda, Israel.

I use three key data points gauge the value of any dividend equity or fund like Magic Software (MGIC): 

(1) Price

(2) Dividends

(3) Returns

MGIC Price

Magic Software's price was $8.11 per share at yesterday's market close.A year ago its price was $7.55 for a gain of $0.56 per share. 

Assuming Magic Software's price will trade between the range of $7.50 to $9.50 next year, its price could grow another $0.56 from $8.11 to $8.67 by April 2019. 

MGIC Dividends

Magic Software's most recent semi-annual dividend was $0.13 declared in February and paid March 26.Two payouts of $0.13 peg the annual amount at $0.26 for a yield of 3.2% at yesterday's $8.11 share price. 

Gains For MGIC?

Adding the $0.26 estimated annual dividend to the $0.56 estimated year over year price gain makes a $0.82 projected gross annual gain, which will be reduced by the cost to trade these shares.  

$1,000.00 invested today at the $8.11 price buys 123 shares. 

A $10 broker fee paid half at purchase and a half at sale costs about $0.08 per share Subtracting that $0.08 brokerage cost from the estimated $0.82 gross gain leaves a net gain of $0.74 X 123 shares = $91.02 or a 9% potential net gain on a $997.53 investment.

Therefore, Magic Software Enterprises Ltd. (whose ticker symbol is MGIC), now shows a possible 9% net gain including a 3.2% dividend yield. 

3 analysts cover this stock. Of those 3: 1 says buy; 2 say outperform, none say hold, underperform, or sell.

The current stock price has fallen 86% from a peak of $60.00reached in December 1999 to its recent $8.11. MGIC's lowest low price was $1 in March 2009.

The 3 analysts median target price estimate is at $10.25 which is $1.58 over my year over year calculation of $8.67. A year from now we'll look back to see who's closest.

Those forward-looking numbers were conjecture based on past year performance. The 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 Magic Software Enterprises Ltd (MGIC) is worth your time and money.