Image Source: Komatsu () manufactures and sells construction, mining, utility, forestry, and industrial machinery. It also provides related services such as parts, financing, and maintenance.Its major products are hydraulic excavators, bulldozers, wheel loaders, dump trucks, and motor graders, which focus on surface mining and construction.Through its subsidiary, Komatsu Mining (previously Joy Global it was acquired), the company manufactures and sells surface mining equipment like draglines as well as underground mining machinery such as continuous miners and blast hole drills.The company was founded in 1884 and is headquartered in Tokyo.Three key data points gauge KMTUY or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three keys also best tell whether any company has made, is making, and will make money.KMTUY PriceKomatsu’s share price rose 16% from $24.20 to $26.94 as of Tuesday’s market close.In the past 10 years, the company’s share price has rarely been less than $14.75 nor more than $40.43. Komasu’s price reached that all-time high on January 11, 2018.If shares trade in the range of $24.00 to $32.00 this next year, the recent $26.94 share price might grow to $28.00. Of course, KMTUY’s share price could also drop about the same $1.06 estimated amount or more.My $1.06 price upside estimate is based on the average of Komatsu’s one-year price gains over the past 20 years.KMTUY DividendKomatsu has paid variable semi-annual dividends since December 2011. The company’s most recent Semi-annual dividend of $0.5971 was declared on March 1st for shareholders of record on March 27th and the payout was made on July 3rd. A second dividend for December 2024 has not yet been declared.The estimated annual dividend of $1.19 yields 4.43%, as of Tuesday’s closing price.KMTUY ReturnsPutting it all together, a $2.25 estimated annual gross gain per share shows up by adding Komatsu’s annual $1.19 dividend to the estimated price upside of $1.06, totals that $2.25 gross gain.A little under $1000 buys 37 shares at Tuesday’s $26.94 share price.A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.27 per share out of the $2.25 gross gain to give us a net gain of $1.98 X 37 shares = $73.26 for about a 7.3% estimated net gain for the year.Furthermore, the $44.30 annual estimated dividend from $1k invested is 1.64 times more than the $26.94 single share price. By these numbers, KMTUY could be an ideal dividend dog.Therefore, you might choose to pounce on Komatsu. It is a 140-year-old variable semi-annual dividend-paying industrial machinery manufacturer with a 13-year dividend record.The exact track of Komatsu’s future price and dividend will entirely be determined by market action and company finances.Remember the best measure of stock value is through direct ownership of shares.More By This Author:
Current Report: Komatsu Limited
