Image Source: Unsplash
 

Despite its Spanish roots, BBVA generates only about a quarter of its profits in Spain. Perhaps, on a normalized basis, BBVA's market-leading Mexican bank should contribute half of its earnings, while its Turkish operation should account for another 15%. The balance of BBVA's earnings comes from smaller operations in South America.

BBVA is overwhelmingly a retail and commercial bank, with corporate and investment banking forming a minor part of the overall business. BBVA also offers insurance and investment products through its banking networks.

The company provides its products through online and mobile channels.

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

Three key data points gauge Banco Bilbao Vizcaya Argentaria, S.A. or any dividend paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

BBVA Price

Over the past year, Banco Bilbao share price increased nearly 45.5% from $7.07 to $10.29 as of Tuesday’s market close.

If Banco Bilbao shares trade in the range of $8.00 to $15.00 this next year, its recent $10.29 share price might rise to $11.30 by next year. Of course, Banco Bilbao price could also drop about the same $1.01 estimated amount, or more.

My 01 however, is just over the average share price gain by BBVA over the past five years.
 

BBVA Dividend

Banco Bilbao has paid annual variable dividends since March, 1989. Convering from Quaterly payouts to semi-annual mode in 2017 and to annual mode in 2023.

Banco Bilbao most recent A dividend of $0.43 was declared March 12th for shareholders of record April 8th and the dividend was paid April 25th.

A forward looking $0.43 annual dividend yields 4.13% at Monday’s $10.29 share price.
 

BBVA Returns

To put it all together, add the BBVA projected annual dividend of $0.43 to the estimated price upside of $1.01 to get a $1.44 estimated gross gain for the coming year.

At Tuesday’s $10.29 share price, a little under $1000 would buy 97 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.10 per share.

Subtracting that unlikely $0.10 brokerage cost from the $1.44 estimated gross gain reveals a net gain of $1.34 X 97 shares = $128.98 for about an 12.95% estimated net gain on the year.

Furthermore, the $41.30 annual dividend income from $1K invested is 4 times more than the single share price. It is an ideal dividend dog.

You might choose to pounce on Banco Bilbao Vizcaya Argentaria SA. It is a 166 year-old dividend paying Spanish-based diversified Bank that has a 35 year track record paying annual variable dividends.

The exact track of Banco Bilbao 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.

More By This Author:

Current Analysis: ANZ Group
Stock Analysis: ABN AMRO Bank
Current Analysis: Skyworks Solutions