Current Analysis: Grupo Aeroportuario

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Grupo Aeroportuario del Pacifico SAB de CV (GPAEF) is engaged in the construction, development, and operation of airports in Mexico.

The company's segment includes Guadalajara; Tijuana; Puerto Vallarta; San Jose del Cabo; Montego Bay; Hermosillo; Guanajuato and Other Airports. It generates maximum revenue from the Guadalajara segment.

The company was incorporated in 1998 and is headquartered in Guadalajara, Mexico.

Three key data points gauge Grupo Aeroportuario del Pacifico 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.

GPAEF Price

Over the past year, Grupo Aeroportuario's share price fell about 8% from $17.50 to $16.10 as of Wednesday’s market close.

If GPAEF trades in the range of $12.00 to $20.00 this next year, its recent $16.10 share price might rise to $17.30 by next year. Of course, Grupo Aeroportuarios price could drop about the same $1.20 estimated amount or more.

My annual upside estimate of $1.20 however, is about equal to the average of Grupo Aeroportuario’s one-year price increases accumulated over the past seven years.

GPAEF Dividend

Grupo Aeroportuario has paid variable quarterly dividends since November 2011, except for 2018.  GPAEFs most recent Q dividend of $0.21 was declared on November 30, 2023, to shareholders of record on December 11th. The payout was made on December 14th.

A forward-looking $1.07 annual dividend yields 6.64% at Wednesday’s $16.10 share price.

GPAEF Returns

To put it all together, add the estimated annual dividend of $1.07 to the price upside of $1.20 to find a $2.27 gross gain.

At Friday’s $16.10 share price, a little over $1000 would buy 62 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.16 per share.

Subtracting that likely $0.16 brokerage cost from the $2.27 gross gain produces a net gain of $2.11 X 62 shares = $130.82 for a 13.1% estimated net gain.

You might choose to pounce on Grupo Aeroportuario It is a 25-year-old Gudalahara-based Mexican airport operator.

Furthermore, the estimated $66.40 of annual dividend income from $1k invested is over 4 times greater than GPAEF’s recent $16.10 single share price.

The exact track of Grupo Aeroportuario's ongoing future price and dividend will 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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