Taiwan Semiconductor For Integrated Circuits And More
Today I'm reviewing a large-cap semiconductor firm.
It's name is Taiwan Semiconductor Manufacturing Company Limited
It's trading ticker symbol is TSM .
Taiwan Semiconductor Manufacturing Co. Ltd manufactures, sells, packages, tests and computer-aided designs integrated circuits and other semiconductor devices.
The company manufactures masks and electronic spare parts; researches, develops, designs, manufactures, sells, packages, and tests color filters; and offers customer and engineering support services.
It is also involved in investing activities.
The company operates in Taiwan, the United States, Asia, Europe, the Middle East, Africa, and internationally.
Taiwan Semiconductor Manufacturing Company Limited was founded in 1987 and is headquartered in HsinChu, Taiwan.
I use three key data points to gauge the value of any dividend equity or fund like Taiwan Semiconductor Manufacturing Company Limited:
(1) Price
(2) Dividends
(3) Returns
After those three, four more keys are used to finally unlock an equity or fund in which to invest.
However, those first three primary keys, best tell whether a company has made, is making, and will make money.
TSM Price
Taiwan Semi's price per share was $38.38 at yesterday's market close. A year ago its price was $35.85 for a gain of $2.53 per share.
Assuming Taiwan Semi's price will trade in the range of $35 to $55 again next year, its price could grow by that $2.53 again from it current $38.38 to $40.91 by July, 2019.
TSM Dividends
Taiwan Semi's most recent annual dividend was $1.345 payable today.
That annual take of $1.345 yields 3.5% at yesterday's $38.38 share price.
Gains For TSM?
Adding the $1.345 annual dividend to the $2.53 potential year over year price gain makes a $3.88 projected gross annual per share gain, which will be reduced by any cost to trade these shares.
A little under $1,000.00 invested today at the $38.38 price buys 26 shares.
A $10 broker fee paid half at purchase and half at sale costs about $0.38 per share
Subtracting that $0.38 brokerage cost from the estimated $3.88 gross gain leaves a net gain of $3.50 X 26 shares
= $91.00
or a 9.1% net gain on a $997.88 investment.
Therefore, Taiwan Semiconductor Manufacturing Company Limited (whose ticker symbol is TSM), now shows a possible 9.1% net gain including a 3.5% dividend yield.
Eight analysts cover this stock:
Four say "buy" TSM.
One says TSM will "outperform" its peers.
Two say "hold" TSM.
One says TSM will "underperform" its peers.
Their eight analyst consensus recommendation adds up to 2.0 or "outperform" and their median price target nearly $4 higher than my $40.90 year over year estimate
Y Charts rates TSM "neutral' for an overall "Y" rating. Y Charts rates TSM "good" for a Value score and "strong" for a Fundamental reading and gives a Historic Valuation score for TSM of "9.18% undervalued" per a Y Charts rating based on a $42.26 price calculation.
You could look at all those numbers this way, Taiwan Semiconductor Manufacturing Company Limited has made money, is making money, and could net a 9.1% gain next year including a 3.5% annual 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 if Taiwan Semiconductor Manufacturing Company Limited is worth your time and money.
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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