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Grupo Financiero Banorte SAB de CV (GBOOF) is a Mexican financial services company.

The company offers a wide variety of products and services including banking services, brokerage, wholesale banking, leasing, factoring, insurance, pensions, and retirement savings.

It operates locally in Mexico.

It also provides insurance products, including life, home, auto, health, savings, credit card, mobile equipment, and mortgage credit insurance; foreign exchange services; and online and mobile banking services.

Grupo Financiero Banorte, S.A.B. de C.V. was founded in 1899 and is based in Mexico City, Mexico.

Three key data points gauge Grupo Financiero Banorte SAB de CV or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

GBOOF Price

Over the past year, Groupo’s share price rose about 22.5% from $6.867 to $8.512 as of Tuesday’s market close.

If Grupo Financiero Banorte stock trades in the range of $6.00 to $12.00 this next year, its recent $8.51 share price might rise to $10.00 by next year. Of course, Gropo’s price could drop about the same $1.49 estimated amount or more.

My upside estimate of $1.49, however, is $0.23 under the average annual price gain for GBOOF’s shares over the past three years.

GBOOF Dividend

Grupo Financiero Banorte has paid variable semi-annual dividends since January 31, 2013. GBOOFs most recent SA dividend, paid June 12th to shareholders of record June 8th, was $0.45. Its estimated annual return of $0.75 casts a forward yield is 8.85% per Tuesday’s closing price.

GBOOF Returns

Add the $0.75 anticipated annual dividend to Grupo Financiero Banorte’s estimated $1.49 possible price upside, revealing a $2.24 potential gross gain per share for the coming year.

At Tuesday’s $8.51 closing price, a little over $1000 would buy 118 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.085 per share.

Subtracting that maybe $0.085 brokerage cost from my estimated $2.24 gross gain per share makes a net gain of $2.155 X 118 shares = $254.29 or about a 25.4% net gain.

This may be the time to pounce on Grupo Financiero Banorte shares. But beware, GBOOF is an established banking firm doing business in a volatile environment. However, the recently estimated $88.50 dividend from $1000 invested comes in at about 10.4 times the recent $8.51 single share price. The choice is yours.

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

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