Current Analysis: BNP Paribas

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A merger of Banque Nationale de Paris and Paribas created BNP Paribas (BNPQY) in 2000, making it the largest publicly traded bank in France.

Although BNP Paribas has operations in about 80 countries, it considers France, Italy, and Belgium to be its home markets.

As mentioned, Banque Nationale de Paris changed its name to BNP Paribas SA in May 2000. However, the company was founded in 1822 and is headquartered in Paris, France.

Three key data points gauge BNP Paribas 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.

BNPQY Price

Over the past year, BNP’s share price increased just over 3.7% from $33.06 to $34.29 as of Wednesday’s market close.

If BNPQY shares trade in the range of $25.00 to $45.00 this next year, its recent $34.29 share price might rise to $40.00 by next year. Of course, BNP's price could also drop about the same $5.71 estimated amount or more.

My $5.72 upside is based on about half the median of one-year target estimates from three analysts tracking BHPQY for brokers.

BHPQY Dividend

BNP Paribas has paid annual variable dividends since July 2004. The most recent $2.49 A dividend was declared on March 26th for shareholders of record on May 17th and the dividend was paid June 24th. A forward-looking $2.49 annual dividend yields 7.26% at Wednesday’s closing price.

BHPQY Returns

To put it all together, a $8.20 estimated one-year gross gain per share shows up by adding BNPQY’s  $2.49 annual dividend to the estimated price upside of $5.71.

A little under $1000 buys 29 shares at $34.29 per share.

A $10 broker fee (if charged), paid half at purchase and half at sale, might take about $0.3225 per share out of the $8.21 gross gain to reveal a net gain of $7.8875 X 29 shares = $228.74 for about a 23% estimated net gain on the year.

Furthermore, the $72.60 annual dividend income from $1K invested is about 2.12 times greater than the $34.29 single share price. By these numbers, BNPQY may be an ideal dividend dog.

You might choose to pounce on BNP Paribas.  It is a 202-year-old dividend-paying Paris-based banking firm with a 22-year track record paying variable annual dividends.

The exact track of BNPQY's 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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