E Daily Stock Pick: Infosys Ltd

That $0.15 SA payout produces an annual payout estimated at $0.27 per year and a resultant yield of 2.54% based on Friday's $10.63 closing price.

Gains For INFY?

Adding the $0.27 annual estimated dividend to my $1.25 estimate of Infosys's price upside (matching last year's) shows a $1.52 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we pay a little under $1,000.00 today at the $10.63 recent stock price would buy us 94 Infosys Ltd shares.

A $10 broker fee paid half at purchase and half at sale will cost us $0.11 per share.

Subtract that $0.11 brokerage cost from the estimated $1.52 gross annual gain leaves a net gain of $1.41 X 94 shares = $132.54 or a 13.3% net gain on a $999.22 investment.

Therefore, Infosys Ltd whose trading ticker symbol is INFY now shows a possible net gain of 13.3% including a 2.54% dividend yield.

Fifteen brokers track Infosys Ltd stock:

One says "buy" INFY.

Thirteen say ''hold" INFY shares.

One thinks INFY will "underperform" peers.

Their consensus rating is 2.93 or "hold."

Therefore, you can look at Infosys Ltd and see it has made money, is making money, and could net a 13.3% gain including a 2.54% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to determine if Infosys Ltd is worth your time and money.

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