Barratt Development (BTDPY) is the U.K.’s largest residential property developer by revenue and dwelling completions, marketing homes under its three brands Barratt Homes, David Wilson Homes, and Barratt London.Aligning with the typical business model employed by U.K. homebuilders, Barratt is vertically integrated through the land development, construction, and sales and marketing segments of the residential property build-out value chain.The company was incorporated in 1958 and is headquartered in Coalville, the United Kingdom.Three key data points gauge Barratt Development 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. BDTPY PriceOver the past year, Barratt’s share price fell about 8.8%, from $12.51 to $11.41 as of Friday’s market close.If Barratt’s shares trade in the range of $10.00 to $14.00 this next year, its recent $11.41 share price might rise to $12.00 by next year. Of course, Barratt’s price could drop about the same $0.59 estimated amount, or more.My annual upside estimate of $0.59, however, is the amount of upside needed for BTDPY to get back to even money for the past year. BTDPY DividendBarratt Development PLC has paid variable semi-annual dividends since December 2016. Barratt’s most recent SA dividend of $0.11 was declared March 13th for shareholders of record April 11th and the payout is scheduled for June 3rd.A forward looking $0.80 annual dividend yields 7.01% at Friday’s $11.41 share price. BTDPY ReturnsTo put it all together, add the Barratt estimated annual dividend of $0.80 to the estimated price upside of $0.59 to find a $1.39 estimated gross gain for the coming year.At Friday’s $11.41 price, a little over $1000 would buy 88 shares.A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.114 per share.Subtracting that likely $0.114 brokerage cost from the $1.39 gross gain reveals a net gain of $1.276 X 88 shares = $112.29 for a 11.2% estimated net gain on the year. You might choose to pounce on Barratt Development PLC. It is a 65-year-old dividend-paying U.K.-based residential Development company. Furthermore, the estimated $70.10 annual dividend income from $1k invested is over 6 times greater than Barratt’s recent $11.41 share price.The exact track of Barratt Development PLC’s ongoing future price and dividend will entirely be determined by market action.Remember, the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Analysis: XP
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