Current Report: BB Seguridade Participações Could Gain 27.6% This Year

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

BB Seguridade Participações SA (BBSEY) provides insurance products and services. It operates through two segments: Insurance and Brokerage. 

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 $2.07 (or about 45%) from $6.04 to $8.11 in the past year, per Friday’s closing market report.

No analysts cover the stock. 

However, the average of the past four-year price progressions shows an average annual gain of ($0.75), which I’ll use for the annual return, after I discuss dividends.  

BBSEY Dividends

BB Sequridade has paid semi-annual dividends since September, 2014. Its most recent SA dividend of $0.49 was paid March 9 (to shareholders of record February 10th, yielding 12.11% annually (per Friday’s closing market report)

BBSEY Returns

Putting it all together, as of July 31st, a possible gross gain of $2.24 was projected. The $0.75 per share average annual Gain was added to the $1.98 forward-looking annual dividend to make that $2.24 gross gain.

A little under $1000 invested in BBSEY at Friday’s $8.11 closing share price would buy 123 shares, which multiply the $2.24 gross gain to $276.20 for the coming year, or about 27.6%.

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

BB Seguridade Participações SA projected annual dividend from $1K invested is $121.10. BBSEY shows an annual dividend which proves to be almost 15 times the recent $8.11single-share price.

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.