Current Report: BB Seguridade Participacoes Could Gain 14.07% In Price This Year

BB Seguridade (BBSEY) targets a 14.07% annual return, driven by a high dividend yield and steady price growth. The Brazilian insurer offers significant value, with annual dividend payouts far exceeding current share costs.

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Source: DepositPhotos

The company was founded in 2012 and is headquartered in São Paulo, Brazil.

BB Seguridade Participações SA (BBSEY) is a holding company which provides insurance products and brokerage services.

Three key data points gauge BBSEY (or any dividend-paying entity):

(1) Price 

(2) Dividends

(3) Returns

Those three keys also indicate if any company has made, is making, and will make money.

BBSEY Price

BB Seguridade’s single share price increased  $0.48 (or about 7.4%) from $6.50 to $6.98 in the past year, per Friday’s closing market report.

No analysts cover the stock. However, 5 years of price history show an average $0.50 annual price gain, which I’ll use to calculate returns after I discuss dividends.  

BBSEY Dividends

BB Seguridade has paid semi-annual dividends since March, 2015.  The most recent SA dividend of $0.49 was paid March 9th (to shareholders on record as of February 20th), yielding a forward-looking 14.07% (per Friday’s closing market report.}

BBSEY Returns

Putting it all together, as of May 29th, a possible gross gain of $1.48 was projected. The $0.50 per share annual gain was added to the $0.98 forward-looking annual dividend.

A little under $1000 invested in BBSEY at Friday’s $6.98 closing share price would buy 143 shares which multiply the $1.48 gross gain to $140.70 for the coming year, or 14.07%.

My dividend dogcatcher rule is to only buy initial shares of a dividend stock that pay an annual dividend (from $1000 invested) that is greater than the cost of one share.

BBSEY’s projected annual dividend from $1K invested is $140.70.

So BB Seguridade shows a dividend from $1,000 invested over 20 times its $6.98 single share price as of Friday’s close.

The exact track of BBSEY’s future share price and dividend will entirely be determined by market action and company finances.  

Remember, the best way to track stock performance and dividend payments is through direct ownership of company shares.

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