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Infosys (INFY) is a leading global IT services provider, with nearly 250,000 employees.

Based in Bangalore, the Indian IT services firm leverages its offshore outsourcing model to derive 60% of its revenue from North America.

The company offers traditional IT services offerings: consulting, managed services and cloud infrastructure services, and business process outsourcing as a service (BPaaS).

The company was formerly known as Infosys Technologies Limited and changed its name to Infosys Limited in June 2011. Infosys Limited was incorporated in 1981 and, as mentioned, is headquartered in Bengaluru, India.

Three key data points gauge Infosys Ltd 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.

INFY Price

Over the past year, Infosys share price grew just about 6.33% from $15.80 to $16.80 as of Tuesday’s market close.

If shares trade in the range of $15.00 to $22.00 this next year, its recent $16.80 share price might rise to $19.00 by next year. Of course, Infosys' price could drop about the same $2.20 estimated amount or more.

My annual upside estimate of  $2.20 however, is in-line with the median of 13 analysts' target price estimates who track INFY shares for brokers.

INFY Dividend

Infosys has paid variable semi-annual dividends since December 2002.

Infosys’s most recent SA dividend of $0.34 was declared May 2nd for shareholders of record May 31st and the dividend pay date is unannounced.

A forward-looking $0.56 annual dividend yields 3.33% at Tuesday’s $16.80 share price.

INFY Returns

To put it all together, add the Infosys projected annual dividend of $0.56 to the estimated price upside of ($2.20) to get a ($2.76) estimated gross gain for the coming year.

At Tuesday’s $16.80 share price, a little over $1000 would buy 60 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.17 per share.

Subtracting that unlikely $0.17 brokerage cost from the $2.76 estimated gross gain reveals a net gain of $2.59 X 60 shares = $155.40 for about a 15.5% estimated net gain on the year.

You might choose to pounce on Infosys Ltd. It is a 43-year-old dividend-paying Bengaluru, India-based information technology services firm that has a 22-year track record paying semi-annual dividends.

The exact track of Infosys Ltd’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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