Credicorp Ltd (BAP) is a Peruvian financial services company.

It operates in four business lines including Universal Banking, Insurance and Pensions, Microfinance, and Investment Management & Advising.

Its subsidiaries include Banco de Credito del Peru, Prima AFP, and Credicorp Capital.

The company was founded in 1889 and is headquartered in Lima, Peru.

Three key data points gauge Creditcorp or any dividend paying firm. The key three are:

(1) Price

(2) Dividend

(3) Return

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

BAP Price

Over the past year, Creditcorp’s share price went up 41.4% from $128.50  to $181.76 as of Friday’s market close.

In the past 10 years the company’s share price has rarely been less than $87 nor higher than $253.00. Credicorp’s all time high price reached $252.49 in March, 2018.

If shares trade in the range of $150.00 to $210.00 this next year, the recent  $181.76 share price might grow to $200.00. Of course, BAP share price could also drop about the same $18.24 estimated amount, or more.

My $18.24 price upside estimate is  based on the median of BAP one year target prices estimated by 13 analysts tracking BAP for brokers.

BAP Dividend

Credicorp has paid variable annual dividends since April 1996. The company’s most recent A dividend of $12.21 was declared April 25th for shareholders of record May 17th and the payout was made October 18th.

The $12.21 Annual dividend yields 6.72%, as of Friday’s closing price.

BAP Returns

Putting it all together, a $30.45 estimated annual gross gain per share shows up by adding Credicorp’s annual $12.21 dividend to the estimated price upside of $18.24, totaling that $30.45 gross gain.

A little over $1000 buys 6 shares at Friday’s $181.78 price.

A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $3.17 per share out of the $30.45 gross-gain to give us a net gain of $27.28 X 6 shares = $163.68 for about a 16% estimated net gain for the year.

Furthermore, the $122.10 annual dividend paid from $1k invested is $60 under the $181.76 single share price. By these numbers, BAP is nowhere near an ideal dividend dog.

Should BAP share price drop to $110 or less, you might choose to pounce on Creditcorp Ltd. It is a 135 year-old, variable annual dividend paying, bank holding company, with a 28-year dividend record.

The exact track of Credicorp’s future price and dividend will entirely be determined by market action and company finances.

Remember, the best measure of stock value is direct ownership of shares.

More By This Author:

Current Report: Niterra
Current Report: Kingfisher PLC
Current Report: Ford Motor Co.