Photo by Jay Gomez on Unsplash
 

Rexel SA (RXLSF) has been mentioned in two previous reroutes for my Viking portfolio. It is a provider of electrical products and services to residential, nonresidential, and industrial markets.

Their product offering includes electrical equipment such as appliances and accessories, cables and routing, lighting, security and communication, home automation, climate control, and building management systems used in the construction, renovation, and maintenance of buildings and infrastructures.

Clients include small and midsize installers, large installers and facility managers, commercial companies, and industrial customers. Rexel's largest end market in Europe.

It operates a network of approximately 1,900 branches in 21 countries. The company was founded in 1967 and is headquartered in Paris, France.

Three key data points gauge Rexel SA or any dividend-paying firm. They are:

(1) Price

(2) Dividends

(3) Returns

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

RXLSF Price

Rexel’s price per share was $23.49 at Wednesday’s market close. In the past year, Rexel’s share price rose $1.69, or about 7.75%.

If Rexel’s stock trades in the range of $15 to $30.00 this next year, its recent $23.49 share price might rise to $26.00 by next year. It could go down about the same amount. My upside estimate of $2.51 is about $0.74 below the average annual price gain of $3.25 Rexel has achieved over the past three years. No analysts cover Rexel’s stock for brokers. So average upside/downside is a convenient default indicator.
 

RXLSF Dividend

Rexel SA’s annual dividend is projected by YCharts to be $2.54 as of its most recent May 11 payout to shareholders of record May 9.
 

RXLSF Returns

Adding the $2.54 declared annual RXLSF dividend to my $2.51 estimated price upside reveals a $5.05 potential gross gain per share for the coming year.

At Wednesday’s $23.49 closing price, a little over $1000 would buy 43 shares.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might cost us about $0.23 per share.

Subtracting that maybe $0.23 brokerage cost from my estimated $5.05 gross gain estimate makes a net amount of $4.82 X 43 shares = $207.26 or a 20.7% net gain.

In the next year, our $1K investment in shares of RXLSF could generate about $108.10 in dividends. Furthermore, a single share of RXLSF at Tuesday’s $23.49 price is over 4.5 times less than the income estimated from $1000.00 invested.

So, by my dogcatcher ideal, this is a good time to consider RXLSF shares, based on their dividends for 2023. The dividend from the $1k invested is 4.6 times greater than RXLSF’s single-share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of Rexel SA. Only time and money invested in this stock will determine its future market value.

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