Daily Stock Analysis: Banco Bilbao Vizcaya Argentaria

Banco Bilbao Vizcaya Agentaria SA bears the ticker symbol (BBVA), and this is my first mention of BBVA for this new Viking Portfolio or for any of my previous dog of the week folios.

Despite its Spanish origins, BBVA generates three quarters of its profits in emerging markets, especially Mexico that contributes nearly half of BBVA's net profit.

BBVA is overwhelmingly a retail and commercial bank with corporate and investment banking forming a smaller part of the overall business.

It operates in Spain, Mexico, South America, the United States, Turkey, Asia, and rest of Europe.

Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857 and is headquartered in Bilbao, Spain.

Three key data points gauge BBVA, or any dividend paying firm:

(1) Price

(2) Dividends

(3) Returns

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

BBVA Price

Banco Bilbao Vizcaya Agentaria price per share was $7.45 at Friday’s market close. In the past year, BBVA share price increased by $0.99, or about 15%.

If BBVA stock trades in the range of $3.00 to $8.00 this next year, its recent $7.45 share price might reach $7.70 by next year. That upside estimate of $0.25 is about $0.09 over the average of one year  BBVA gains over the past 30 years.

BBVA Dividends

Banco Bilbao Vizcaya Agentaria most recent semi-annual  dividend of casts a forward annual yield of 6.04%.

BBVA Returns

Adding the $0.45 annual estimated

BBVA dividend to my one-year price upside estimate of $0.25 reveals a $0.70 potential gross gain estimate per share.

At Friday’s $7.45 closing price, a little under $1000 would buy 134 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.075 per share.

Subtract that maybe $0.075 brokerage cost from my estimated $0.70 gross gain makes a net gain of $0.625 X 134 shares = $83.75 for a 8.38% net gain including the 6% annual dividend yield.

In the next year our $1K investment in shares of Banco Bilbao Vizcaya Agentaria should generate $60.40 in cash dividends. Furthermore, a single share of BBVA at Friday’s $7.45 price is over 8 times less  than the estimated annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a proper time to buy Banco Bilbao Vizcaya Agentaria SA shares, based on their dividends for 2023. The current dividend from $1K invested is 8.11 times higher than the BBVA single share price. Consider yourself alerted.

Now is the time to consider BBVA  shares.

All of the estimates above are speculation based on the past history of investment in shares of Banco Bilbao Vizcaya Agentaria SA. Only time and money invested in this stock will determine its future market value.

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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 solicitation, ...

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