Telefonica Brasil SA, known by the ticker symbol VIV, is a large cap telecom services firm, operating in the communication services business sector. This is my first report on VIV for this Viital stock portfolio. I may have reported on VIV as a candidate for one of my previous six portfolios.

Telefonica Brasil, known as Vivo, is the largest wireless carrier in Brazil with nearly 80 million customers, equal to about 34% market share. 

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The firm is strongest in the postpaid business, where it has 45 million customers, about 38% share of this market. It is the incumbent fixed-line telephone operator in Sao Paulo state and, following the acquisition of GVT, the owner of an extensive fiber network across the country. 

The firm provides Internet access to 6 million households on this network. Following its parent Telefonica’s footsteps, Vivo is cross-selling fixed-line and wireless services as a converged offering. The firm also sells pay-tv services to its fixed-line customers.

The company was formerly known as Telecomunicações de São Paulo S.A. and changed its name to Telefônica Brasil S.A. in October 2011. 

The company was incorporated in 1998 and is headquartered in Sao Paulo, Brazil.

Three key data points gauge any dividend equity or fund such as Telefonica Brasil SA (VIV):

(1) Price

(2) Dividends

(3) Returns

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

VIV Price

Telefonica's price per share was $8.95 as of yesterday's market close. One year ago its price was $8.33. Therefore VIV's share price rose $0.62 or just over 7.4% in the past year.

If Telefonica's stock trades in the range of $7.50 to $12.50 this next year, its recent $8.95 share price might rise by $2.05 to reach $11.00  by January 20, 2023. This estimate is $1.18 below the median of the 1 yr VVY price estimates from four analysts covering the stock for brokerages

VIV Dividends

Telefonica Brasil SA's most recent variable quarterly dividend of about $0.17 was paid to shareholders October 12th, 2021 to those of record April 16th. The estimated Annual dividend payout of $0.84, yields 9.39% per yesterday's $8.95. closing price. 

Telefonica Brasil SA (VIV) has paid variable annual dividend payouts since November 2002. That stretch saw 19 years in November.

VIV Returns

Adding the $0.83 annual estimated VIV forward-looking dividend to about half the median of four analysts one-year share price upside estimates of $2.05 shows a $2.88 potential gross gain, per share, to be reduced by any costs to trade  VIV shares.  

At yesterday's $8.95 price per share, a little over $1000 would buy 112 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.09 per share.

Subtract that maybe $0.09 brokerage cost from my estimated $2.88 gross gain per share results in a net gain of $2.89 X 112 shares = $322.56 for a 32.25% net gain on a $1,002.40 investment.

So it is that Telefonica Brasil SA (VIV) shows a possible 32.25% net gain including a 9.39% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Telefonica Brasil SA (VIV) could generate $93.90 in cash dividends alone. Note that a single share of VIV stock bought at yesterday's closing price was $8.95. Therefore, VIV's share price is just about one-tenth of the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is a good point to pick up Telefonica Brasil SA (VIV)  shares if the declared dividends are paid. The estimated next-year dividend from $1K invested is nearly 10.5  times higher than VIV's single share price. Consider yourself alerted. It's a sign!  

All of the estimates above are speculation based on the past history of Telefonica Brasil SA (VIV). Only time and money invested in this stock will determine its market value.