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France-based Schneider Electric SE (SBGSY) is a leading global supplier to industrial, utility, data center, and energy customers. The company's products span from ground-level equipment to top-level analytics and execution software.

Roughly 75% of its revenue comes from its low- and medium-voltage, while revenue from its automation division drives the remaining 25%. The company is the number-two and number-four supplier, respectively, in discrete (for example, manufacturing) and process (for example, fluid processing) automation.

However, Schneider Electric holds the leading position in process safety systems. At the group level, software and services contribute about 18% of sales, integrated systems another 23%, and individual products (components and equipment) the final 59%.

The company was founded in 1836 and is headquartered in Rueil-Malmaison, France.

Three key data points gauge Schneider Electric SE or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

SBGSY Price

Over the past five years, Schneider’s share price increased about 109% from $16.41 to $34.33 as of Thursday’s market close.

If Schneider’s stock trades in the range of $20.00 to $40.00 this next year, its recent $34.33 share price might rise to $38.00 by next year. Of course, Schneider’s price could drop about the same $3.67 amount, or more.

My upside estimate of $3.67, however, is $0.09 over the average of Schneider annual price gains over the past five years.

SBGSY Dividend

Schneider Electric SE has paid variable annual dividends since April 29, 2009. Schneider’s most recent annual dividend, paid June 30th to shareholders of record 1st was $0.68, (its highest ever).Its annual dividend payout is projected toyield 2.00% per Thursday’s closing price.

SBGSY Returns

Adding the $0.69 anticipated annual dividend to Schneider’s estimated $3.67 possible price upside, reveals a $4.36 potential gross gain per share for the coming year.

At Wednesday’s $34.33 closing price, a little over $1000 would buy 29 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.34 per share.

Subtracting that maybe $0.34 brokerage cost from my estimated $4.36 gross gain per share makes a net gain of $4.02 X 29 shares = $116.58 or about a 12.5% net gain.

This may be the time to pounce on Schneider Electric SE shares. But beware, Schneider is an automation juggernaut. However, the estimated $20.00 dividend from $1000 invested comes in at just 58% of the recent $34.33 single share price. Wait for Schneider’s price to drop to $26.20 in so it can provide you adequate dividend income. The choice is yours.

Remember the true value of any stock is best realized by your personal ownership of shares.

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