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XP Inc. (XP) is a Cayman Island-based technology-driven financial services platform.

It is a provider of low-fee financial products and services in Brazil. The company evaluates its business through a single segment that monitors operations, makes decisions on fund allocation, and evaluates performance.

It generates revenue through Brokerage commissions.

It offers its financial products and services through its omnichannel distribution network and online portals.

XP Inc. was founded in 2001 and is based in Grand Cayman, Cayman Islands.

Three key data points gauge XP Inc 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.

XP Price

Over the past year, XP’s share price fell just over 38% from $26.83 to $16.62 as of Thursday’s market close.

If XP shares trade in the range of $10.00 to $40.00 this next year, its recent $16.62 share price might rise to $20.00 by next year. Of course, XP’s price could also drop about the same $3.38 estimated amount or more.

My $3.38 upside is based on about half the median of one-year target estimates from ten analysts tracking XP for brokers.

XP Dividend

XP Inc has paid semi-annual variable dividends since September 2023. The most recent $0.73 SA dividend was declared November 13th for shareholders of record December 12th and the most recent SA dividend was paid December 22, 2023. The forward-looking $1.31 annual dividend yields 7.88% at Thursday’s closing price.

XP Returns

To put it all together, a $4.69 estimated one-year gross gain per share shows up by adding XP’s  $1.31 annual dividend to the estimated price upside of $3.38.

A little under $1000 buys 60 shares at $16.62 per share.

A $10 broker fee (if charged), paid half at purchase and half at sale, might take about $0.17 per share out of the $4.69 annual, gross gain to reveal a net gain of $4.52 X 60 shares = $271.20 for about a 27% estimated net gain on the year.

Furthermore, the $78.80 annual dividend income from $1K invested is about 4.74 times greater than the $16.62 single share price. By these numbers, XP may be an ideal dividend dog.

You might choose to pounce on XP Inc.  It is a 22-year-old dividend-paying Grand Cayman-based brokerage firm with a one-year track record paying variable semi-annual dividends.

The exact track of XP Inc'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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