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Rexel SA (RXLSF) is a provider of electrical products and services to residential, nonresidential, and industrial markets.

Their products include electrical equipment such as appliances and accessories, cables and routing, lighting, security and communication, home automation, climate control, and building management systems used in the construction, renovation, and maintenance of buildings and infrastructures.

Clients include small and midsize installers, large installers and facility managers, commercial companies, and industrial customers. Rexel's largest end market is Europe.

It operates a network of approximately 1,900 branches in 21 countries.

The company was founded in 1967 and is headquartered in Paris, France.

Three key data points gauge Rexel SA 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.

RXLSF Price

Over the past year, Rexel’s share price increased about 5.4% from $15.29 to $23.58 as of Wednesday’s market close.

If RXLSF stock trades in the range of $15.00 to $30.00 this next year, its recent $23.58 share price might rise to $25.60 by next year. Of course, Rexel’s price could drop about the same $2.02 estimated amount or more.

My upside estimate of $2.02, however, is based on the average annual price performance of the past five years.

RXLSF Dividend

Rexel SA has paid variable Annual dividends increasing roughly annually since June 30, 2011. RXLSF's most recent A dividend, paid to May 11 to shareholders of record on May 9th, was $2.64. That annual return casts a forward yield of 11.2% per Wednesday’s closing price.

RXLSF Returns

Add another $2.64 anticipated annual dividend to Rexel’s estimated $2.02 possible price upside, reveals a $4.66 potential gross gain per share for the coming year.

At Wednesday’s $23.58 closing price, a little under $1000 would buy 42 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.24 per share.

Subtracting that likely $0.24 brokerage cost from my estimated $4.66 gross gain per share makes a net gain of $4.42 X 42 shares = $185.64 or about a 18.6% net gain.

This could be time to pounce on Rexel SA shares. But beware, RXLSF is a 57-year-old electronics distribution and construction firm paying A dividends for the past twelve years. However, the estimated $112.00 dividend from $1000 invested comes in at 4.4 times more than the recent $23.58 single share price. The choice is yours. The dividend from the $1K invested exceeds the single share price by more than 4 times.

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

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