Bolsa Mexicana De Valores - Expect Good (Not Great) Returns From This High Dividend Payer

Bolsa Mexicana de Valores is a monopoly with 27% ROCE, no debt, and returns 80% of earnings to shareholders. Growth is modest, but is expected to accelerate driven by Mexican trading volumes, pension reforms, and a digital evolution program, with 5% annual growth projected post-2027. BMV trades at 13x earnings with a 5% dividend yield, but I target a price below MXN 30/share for a sufficient margin of safety. Risks include margin pressure from tech upgrades, FX exposure, and regulatory fee caps; I will consider entry if shares approach the mid-to-high MXN 20s.

Investment Thesis Bolsa Mexicana de Valores ( BOMXF ) (BMV) is a wide-moat business earning 27% ROCE, no debt, and a net-cash balance sheet. The company lacks significant reinvestment opportunities, so management returns roughly 80% of earnings to shareholders and the This article was written by Jim Wade 459 Followers Follow Individual value investor writing about businesses I've researched. Focus on small to midsize businesses which may fly under the radar of larger investors. I prefer companies that generate substantial cashflows with limited debt, have a durable competitive advantage, and are led by founder-type CEOs with large personal stakes.The views expressed here are my own and are not those of, or on behalf of, Wade Capital LLC or any other entity with which I am affiliated. I am not providing investment advice, and nothing published under this profile is a recommendation, an offer of advisory services, or a solicitation of clients. It should not be relied on as such. I may hold positions in securities discussed and may buy or sell without notice.