TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

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Tesco (TSCDY) is one of the largest food retailers in the world, operating thousands of stores in the United Kingdom, Ireland, and Europe.

According to Kantar, Tesco is the market leader in the U.K. with a share of more than 27%, roughly double that of Asda or Sainsbury's. Tesco operates a core supermarket business in addition to convenience and neighborhood outlets. With a 35% digital market share in the U.K., the company holds a dominant position online.

Tesco gained exposure to the cash-and-carry and out-of-home delivering industries with the landmark GBP 4 billion acquisition of Booker in 2018.

Tesco PLC was founded in 1919 and is headquartered in Welwyn Garden City, the United Kingdom.

Three key data points gauge Tesco 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.

TSCDY Price

Over the past year, Tesco’s share price rose about 7.75% from $9.93 to $10.70 as of Wednesday’s market close.

If Tesco shares trade in the range of $9.00 to $12.00 this next year, its recent $10.70 share price might rise to $11.10 by next year. Of course, Tesco’s price could drop about the same $0.40 estimated amount or more.

My annual upside estimate of $0.40 however, is $0.07 above the three-year average upside for Tesco share prices.

TSCDY Dividend

Tesco PLC has paid variable semi-annual dividends since July 2003. Tesco’s most recent SA dividend of $0.14 was declared October 10th for shareholders of record October 13th and the payout was made December 1st.

A forward-looking $0.41 annual dividend yields 3.83% at Wednesday’s $7.12 share price.

TSCDY Returns

To put it all together, add the Tesco's estimated annual dividend of $0.41 to the estimated price upside of $0.40 to find a $0.81 estimated gross gain for the coming year.

At Wednesday’s $10.70 price, a little under $1000 would buy 93 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.11 per share.

Subtracting that likely $0.11 brokerage cost from the $0.81 gross gain reveals a net gain of $0.70 X 93 shares = $65.10 for a 6.5% estimated net gain on the year.

You might choose to pounce on Tesco PLC It is a 105-year-old dividend-paying Britain-based food and services company.  Furthermore, the estimated $38.30 annual dividend income from $1k invested is just over 3.5 times greater than Tesco’s recent $10.70 share price.

The exact track of Tesco’s ongoing 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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