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.

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 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, Grupo’s share price gained about 10.6% from $7.25 to $8.13 as of Tuesday’s market close.

If GBOOF stock trades in the range of $6.50 to $9.50 this next year, its recent $8.13 share price might rise to $9.00 by next year. Of course, GBOOF’s price could drop about the same $0.87 estimated amount or more.

My upside estimate of $0.87, however, is about the same as the past year’s price gain.

GBOOF Dividend

Grupo Financiero Banorte has paid variable annual dividends since January 31, 2013.  Banorte’s most recent A dividend, paid in June and October installments to shareholders of record on June 8th and October 12th, was $0.74.

That measures up to an annual forward-looking yield of 8.75%.

GBOOF Returns

Add the $0.70 anticipated annual dividend to GBOOF’s estimated $0.87 possible price upside, revealing a $1.57 estimated gross gain per share for the coming year.

At Tuesday’s $8.13 closing price, a little under $1000 would buy 123 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.08 per share.

Subtracting that likely $0.08 brokerage cost from my estimated $1.57 estimated gross gain per share makes a net gain of $1.49 X 123 shares = $183.27 or about an 18% net gain.

This might be about time to pounce on CBOOF shares. But beware, Grupo Financiero Banorte is a Mexico-based regional bank paying regular annual dividends for ten years. Furthermore, the estimated $85.10 annual dividend from $1000 invested comes in about 10.5 times greater than the recent $8.13 single share price. The question is, what future dividend payments and price changes lie ahead?

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

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