Photo by Austin Distel on Unsplash

Arca Continental SAB de CV with the ticker EMBVF is a large-cap non-alcoholic beverage company operating in the consumer defensive business sector. This is the fifth of five consumer candidates competing for the forty-sixth slot in my Viital folio. It is my first ever report on EMBVF for my Viital portfolio or any of my previous portfolios.

Arca Continental SAB de CV produces and sells nonalcoholic beverages and snacks, primarily in Latin America.

The company is Coca-Cola's bottler in northern and western Mexico, Ecuador, Peru, and northern Argentina. Beverage sales, which consist mostly of Coca-Cola products, account for roughly 90% of the company's total revenue.

Other beverage brands include Santa Clara in Mexico and Toni in Ecuador, both of which sell dairy products. The company's snacks brands include Bokados in Mexico, Inalecsa in Ecuador, and Wise in the United States. The majority of the company's sales are in Mexico.

The company was formerly known as Embotelladoras Arca, S. A. B. de C. V.

Arca Continental, S.A.B. de C.V. is based in Monterrey, Mexico.

Three key data points gauge any dividend equity or fund such as Arca Continental, S.A.B. de C.V.:

(1) Price

(2) Dividends

(3) Returns

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

EMBVF Price

Arca’s price per share was $7.01 as of yesterday's market close.  One year ago its price was $6.12. Thus, EMBVF’s share price increased by $0.89 or about 14.5% in the past year.

If Arca’s stock trades in the range of $5.00 to $8.00 this next year, its recent $7.01 share price might rise by $0.59 to reach $7.60 by next year. My $0.59 upside estimate is equal to the one-year average price increase per share of EMBVF shares over the past 3 years.
 

EMBVF Dividends

Arca’s most recently declared variable quarterly dividend of $0.16 was paid on April 19th, to shareholders on record as of April 13th.

Since May 6, 2009, EMBVF has paid semi-annual variable dividends.  The current forward-looking quarterly dividend of $0.16 projects an annual dividend of $0.42 yielding 6.21% as of yesterday's $7.01 share price.
 

EMBVF Returns

Adding the $0.41 EMBVF annual dividend to my estimated one-year price upside estimate of $0.59 shows a $1.00 potential gross gain, per share, to be reduced by any costs to trade Arca shares.

At yesterday's $7.01 closing price, a little over $1000 would buy 143 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us $0.07 per share.

Subtract that maybe $0.07 brokerage cost from my estimated $1.00 gross gain estimate per share results in a net gain of $0.93 X 143 shares = $132.99, for a 13.2% net gain including a 6.21% forward-looking annual dividend yield.

Over the next year, our $1K investment in Arca shares should generate $62.10 in cash dividends. Of course, a single share of EMBVF stock bought at yesterday's $7.01 price is over 8 times LESS than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is prime time to pick up Arca Continental, S.A.B. de C.V. shares based on their forward-looking dividends for the year 2022. The forecast annual dividend from $1K invested is 8.59 times greater than yesterday’s single share price. Consider yourself alerted. It's a sign. Now IS the time.

All of the estimates above are speculation based on the past history of Arca Continental, S.A.B. de C.V. Only time and money invested in this stock will determine its market value.

More By This Author:

Daily Stock Analysis: JBS S.A.
Daily Stock Analysis: Brasilagro - Cia Bras De Prop Agricolas
Daily Stock Analysis: Imperial Brands