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XP Inc (XP) is a Cayman Island-based technology-driven financial services platform. It provides low-fee financial products and services in Brazil.

The company evaluates its business through a single segment monitoring operations, making decisions on fund allocation, and evaluating performance. It generates revenue through brokerage commissions.

XP Inc. products and services are available 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 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.

XP Price

Over the past year, XP’s share price rose about 49.7% from $13.73 to $20.55 as of Thursday’s market close.

If XP shares trade in the range of $12.00 to $30.00 this next year, its recent $20.55 share price might rise to $25.00 by next year. Of course, XP’s price could drop about the same $4.45 estimated amount or more.

My annual upside estimate of $4.45 however, is $4.11 under the median of one-year price targets from 10 analysts tracking XP for brokers.

XP Dividend

XP Inc. has paid variable semi-annual dividends since September 2023. XP’s most recent SA dividend of $0.73 was declared on November 13th for shareholders of record on December 12th and the payout was made on December 22nd.

A forward-looking $1.32 annual dividend yields 6.42% at Thursday’s $20.55 share price.

XP Returns

To put it all together, add the XP estimated annual dividend of $1.32 to the estimated price upside of $4.45 to find a $5.77 estimated gross gain for the coming year.

At Thursday’s $20.55 price, a little over $1000 would buy 49 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.20 per share.

Subtracting that likely $0.20 brokerage cost from the $5.77 gross gain reveals a net gain of $5.57 X 49 shares = $272.93 for a 27% estimated net gain on the year.

You might choose to pounce on XP Inc It is a 23-year-old dividend-paying Cayman Island-based capital markets company.  Furthermore, the estimated $64.20 annual dividend income from $1k invested is over 3 times greater than XP’s recent $20.55 share price.

The exact track of XP Inc.’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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