Current Analysis: Wal-Mart De Mexico

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Wal-Mart de Mexico SAB de CV (WMMVY) is the owner and operator of Wal-Mart branded self-service stores in Mexico and Central America.

Wal-Mart de Mexico is a subsidiary of Wal-Mart Stores Incorporated, based in the United States. The company generates the majority of its revenue in Mexico and a small proportion of its revenue from the rest of Central America.

The company operates discount stores, hypermarkets, supermarkets, wholesale stores, and pharmacies. The company also engages in the import and sale of goods, property development, and real estate management activities.

The company was founded in 1958 and is headquartered in Mexico City, Mexico.

Wal-Mart de México, S.A.B. de C.V. operates as a subsidiary of Intersalt, S. De R.l. De C.v.

Three key data points gauge Wal-Mart de Mexico or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three keys also best tell whether any company has made, is making, and will make money.

WMMVY Price

Over the past year, Wal-Mart de Mexico’s share price fell about 19.34% from $40.12 to $32.36 as of Thursday’s market close.

If Wal-Mart de Mexico shares trade in the range of $30.00 to $45.00 this next year, their recent $32.36 share price might rise to $37.00 by next year. Of course, WMMVY price could also drop about the same $4.64 estimated amount or more.

My $4.64 upside is $4.44 under the median of one-year target prices from 4 analysts tracking WMMVY for brokers.

WMMVY Dividend

Wal-Mart de Mexico has paid quarterly variable dividends since December 2017. The most recent $0.56  dividend was declared November 15th for shareholders of record December 4th and was paid December 18th. A forward-looking $1.11 annual dividend yields 3.43% at Thursday’s closing price.

WMMVY Returns

To put it all together, a $5.75 estimated one-year gross gain per share shows up when adding MHGVY’s  $1.11 estimated annual dividend to the estimated price upside of $4.64, equalling $5.75

A little over $1000 buys us 31 shares at the $32.36 share price.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might take about $0.3225 per share out of the $5.75 annual, gross gain to give us a net gain of $5.4275 X 31 shares = $168.25 for about a 16.8% estimated net gain for the year.

Furthermore, the $34.30 annual dividend income from $1K invested is $1.94 greater than WMMVY’s $32.36 single share price. By these numbers, Wal-Mart de Mexico may be an ideal dividend dog.

You might choose to pounce on Wal-Mart de Mexico SAB de CV. It is a 66-year-old dividend-paying Mexico City-based retail and real estate venture with almost a 7-year record paying quarterly dividends.

The exact track of WMMVY'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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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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