Image source: TIM SA () which is 67%-owned by Telecom Italia, is the third largest wireless carrier in Brazil, with 61 million subscribers, equal to about 24% of the market.The firm also owns 49% of I-Systems, an infrastructure partnership that is expanding its network footprint across Brazil. I-Systems can provide broadband service to about 9 million locations, equal to a bit less than 15% of the country.TIM leases capacity on the I’-Systems’ network to serve retail broadband customers under the UltraFibra brand.TIM S.A was founded in 2013 and is based in Rio de Janeiro, Brazil.The company operates as a subsidiary of TIM Brasil Serviços e Participações S.A.Three key data points gauge TIM or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three basic keys best tell whether any company has made, is making, and will make money.TIMB PriceOver the past year, TIM’s share price rose near 37% from $12.85 to $17.55 as of Thursday’s market close.If TIMB stock trades in the range of $10.00 to $20.00 this next year, its recent $17.55 share price might rise to $19.60 by next year. Of course, TIMB’s price could drop about the same $2.05 estimated amount, or more.My upside estimate of $2.05, however, is a few cents less than the average annual price gain by TIMB over the past three years.TIMB DividendTIM SA has paid variable quarterly dividends since January 31, 2019. TIM’s most recent Q dividend, of $0.18 was paid November 30 . The next dividend has not yet been declared. A forward-looking TIMB $0.65 annual dividend would yield 3.7% at Thursday’s share price,TIMB ReturnsPutting it all together, we add the estimated forward-looking dividend of $0.65 to my estimated price upside of $2.05 and find a $2.70 gross gain.At Thursday’s $17.77 closing price, a little over $1000 would buy 57 shares.A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.175 per share.Subtracting that likely $0.175 brokerage cost from the $2.70 estimated gross gain per share makes a net gain of $2.53 X 57 shares = $144.21 or about a 14.4% net gain.You might choose to pounce on TIM SA shares. TIM SA is an established Brazilian telecommunications company. Furthermore, the estimated $37.00 dividend income from $1k invested is about 2.1 times greater than Thursday’s price of a single share.The question of what will happen to TIM’s future price and dividend is yet to be answered.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:
Current Analysis: TIM SA
