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About MGIC Dividend Returns

Magic Software Enterprises Ltd. (MGIC) is a dividend-paying stock. When dividends are reinvested through a DRIP (Dividend Reinvestment Plan), they purchase additional shares, which then generate their own dividends—creating a compounding effect that can significantly boost long-term returns.

How We Calculate Total Return

Our total return calculator simulates dividend reinvestment (DRIP) by assuming each dividend payment is used to purchase additional shares at the closing price on the ex-dividend date. This methodology provides an accurate representation of how a dividend reinvestment plan would perform.

Frequently Asked Questions

Q1What is the total return of MGIC over the past year?

Magic Software Enterprises Ltd. (MGIC) delivered a total return of 28.25% over the past year when dividends are reinvested. The price-only return was 25.04%, meaning dividends contributed an additional 3.22 percentage points to total returns.

Q2How much would $10,000 invested in MGIC be worth today?

A $10,000 investment in Magic Software Enterprises Ltd. one year ago would be worth $12,825 today with dividends reinvested (DRIP). Without reinvesting dividends, the same investment would be worth $12,504. Dividend reinvestment added $322 to the portfolio value.

Q3Does MGIC pay dividends?

Yes, Magic Software Enterprises Ltd. (MGIC) pays dividends. In the last year, MGIC paid approximately $0.20 per share in dividends (1.17% yield). Reinvesting these dividends through a DRIP can significantly boost long-term returns — over 20+ years, dividend compounding can account for 30–50% of total returns for dividend-paying stocks.

Q4Did MGIC beat the S&P 500?

No, Magic Software Enterprises Ltd. (MGIC) underperformed the S&P 500 by 2.12 percentage points over the past year. MGIC delivered a total return of 28.25%, compared to the S&P 500's 30.37%. This means a passive S&P 500 index fund outperformed MGIC by 2.12pp during this period.

Q5What is MGIC's worst drawdown?

Magic Software Enterprises Ltd. (MGIC) experienced a maximum drawdown of -37.21% over the past year, declining from its peak on 2026-01-12 to its trough on 2026-02-23. The stock has not yet fully recovered to its prior peak. Maximum drawdown measures the worst peak-to-trough decline and is an important risk metric for investors.

Q6What is MGIC's long-term total return over 10, 20, or 30 years?

Here are Magic Software Enterprises Ltd. (MGIC)'s long-term returns with dividends reinvested. Over 10 years, the total return is 222.0% (12.4% CAGR) — $10,000 would have grown to $32,201. Over 20 years: 992.2% total return (12.7% CAGR) — $10,000 → $109,217. Over 30 years: 475.2% total return (6.0% CAGR) — $10,000 → $57,524. Long-term investors benefit from compounding: dividends buy additional shares, which generate their own dividends, creating an exponential growth effect.

Q7What was MGIC's best and worst year?

Magic Software Enterprises Ltd.'s best calendar year was 1999 with a total return of 1296.6%. Its worst year was 2000 with a total return of -88.7%. This range shows the volatility investors should expect — the difference between the best and worst year is 1385.3 percentage points.

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