Current Analysis: Bouygues (BOUYY)

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Bouygues (BOUYY) is a French conglomerate made up of a range of assets: a construction business, a TV business, and a telecom business. It is one of the biggest construction companies in France and Europe with construction sales of around EUR 25 billion-EUR 30 billion and one of the four telecom operators in France, with both mobile and fixed operations and EUR 6 billion in revenue. It is also the owner of TF1, one of the main media and TV companies in France.

The company was founded in 1952 and is based in Paris.

Three key data points gauge Bouygues or any dividend paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three keys also best tell whether any company has made, is making, and will make money.
 

BOUYY Price

Over the past year, Bouygues’s share price rose about 5% from $6.76 to $7.11 as of Monday’s market close. Over the past 6 years in business the company’s share price has never been less than $5.00 or more than $10.25.

If Bouygues shares trade in the range of $6.00 to $9.00 this next year, their recent $7.11 share price might rise by $0.29 to $7.40 in a year. Of course, BOUYY price could also drop about the same $0.29 estimated amount, or more.

My $0.29 upside estimate is $0.06 under the annual price gain last year.
 

BOUYY Dividend

Bouygues has paid annual variable dividends since May 2009. The most recent $0.41  dividend was declared April 16th for shareholders of record April 29th and was paid out May 20th. A forward looking $0.41 annual dividend yields 5.77% at Monday’s closing price.
 

BOUYY Returns

To put it all together, a $0.70 estimated one year gross gain per share shows up when adding BOUYY’s  $0.41 estimated annual dividend to the estimated price upside of $0.29, equalling a $0.70 gross gain per share.

A little over $1000 buys us 141 shares at the $7.11 share price.

A $10 broker fee (if charged), paid half at purchase and half at sale, might take about $0.07 per share out of the $0.70 annual estimated gross-gain to give us a net gain of $0.63 X 141 shares = $88.83 for about a 8.8% estimated net gain for the year.

Furthermore, the $57.70 annual dividend income from $1K invested is overt 8 times greater than BOUYY’s $7.11 single share price. By these numbers, Bouygues may be an ideal dividend dog.

You might choose to pounce on Bouygues It is a 72 year-old dividend-paying Paris-based engineering and broadcasting firm with  a 15 year record paying annual dividends.

The exact track of BOUYY future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


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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 ...

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