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TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

BB Seguridade Participacoes SA (BBSEY) is a diversified insurance company that operates two segments: insurance and brokerage. The revenue generation is mostly split between these two segments.

Its insurance segment focuses on life, property, vehicle, and special-risk insurance. It also provides capitalization plans as well as reinsurance.

The company's brokerage segment operates the facilitation of business insurance and reinsurance. BB Seguridade generates its maximum revenue from the Insurance Segment.

The company considers mergers and acquisitions as a component of its operational growth plan.

BB Seguridade Participações S.A. was incorporated in 2012 and is headquartered in Brasilia, Brazil.

BB Seguridade Participações S.A. operates as a subsidiary of Banco do Brasil S.A.

Three key data points gauge BB Seguridad Participacoes SA 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.

BBSEY Price

Over the past year, BB Seguiridade's share price grew just over 2.8% from $6.00 to $6.17 as of Wednesday’s market close.

If BB Seguiridade shares trades in the range of $5 to $8.00 this next year, its recent $6.17 share price might rise to $6.55 by next year. Of course, BB Seguiridade’s price could drop about the same $0.38 estimated amount or more.

My annual upside estimate of $0.38 however, reflects the average annual share price increase over the past three years.

BBSEY Dividend

BB Seguiridade has paid variable semi-annual dividends for the past ten years.  BB Seguiridade ’s most recent SA dividend of $0.25 was declared February 5th for shareholders of record February 14th and the dividend was paid February 29th.

A forward-looking $0.58 annual dividend yields 9.33% at Wednesday’s $6.17 share price.

BBSEY Returns

To put it all together, add the BB Seguiridade projected annual dividend of 0.58 to the estimated price upside of $0.38 to get a $0.96 estimated gross gain for the coming year.

At Wednesday’s $6.17 share price, a little under $1000 would buy 162 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.06 per share.

Subtracting that unlikely $0.06 brokerage cost from the $0.96 estimated gross gain reveals a net gain of $0.90 X 162 shares = $145.80 for about a 14.5% estimated net gain on the year.

You might choose to pounce on BB Seguiridade Participacoes. It is a 12-year-old dividend-paying Brazilian-based insurance and brokerage firm that has a 12-year track record paying SA dividends. Furthermore, the $93.30 estimated dividend income from $1k invested is over 15 times greater than BBSEY’s recent $6.17 share price.

The exact track of BB Seguiridade Participacoes 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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