A portfolio of stocks I've been building since September 3, 2019, is named Volio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the fourth of five financial services sector stocks striving to join my Volio folio. This could be my thirtieth pick for Volio!
That financial services sector includes twenty industries ranging from Asset Management to 8 kinds of Banks, Credit, Exchanges, 6 kinds of Insurance, Savings, and all such financial concerns.
My subject today is a large-cap diversified bank company named, Bank of America Corp. Their trading ticker symbol is BAC. This is my first ever report on Bank Of America Corp.
Bank of America is one of the largest financial institutions in the United States, with more than $2.3 trillion in assets.
It is organized into four major segments: consumer banking, global wealth and investment management, global banking, and global markets.
Bank of America's consumer-facing lines of business include its network of branches and deposit-gathering operations, home mortgage lending, vehicle lending, credit and debit cards, and small-business services.
The company's Merrill Lynch operations provide brokerage and wealth management services, as does U.S. Trust private bank. Wholesale lines of business include investment banking, corporate and commercial real estate lending, and capital markets operations. Bank of America has operations in several countries.
Bank of America Corporation is based in Charlotte, North Carolina.
I use three key data points to gauge dividend equities or funds like Bank Of America Corp:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
BAC Price
BAC's price per share closed at $21.12 yesterday. A year ago their price was $27.21. Thus, in the past year, their market price dropped $6.09 or about 33.4%.
Assuming BAC's stock trades in the range of $18 to $28 this next year, its recent $21.12 price might rise by $3.88 to reach $25.00 by March 25, 2021, assuming upward price momentum continues.
BAC Dividends
BAC's last declared quarterly dividend was $0.18 payable tomorrow March 27th. That $0.18 Q dividend projects an annual payout of $0.72 to yield 3.41% at yesterday's $21.12 share price.
BAC Gains?
Adding the $0.72 annual estimated dividend to my $3.88 estimate of Bank Of America Corp price upside shows a $4.60 potential gross gain, per share, which will be reduced by any costs to trade those shares.
If we put a little under $1,000.00 today in Bank Of America Corp at its recent $21.12 share price, we'd buy 47 shares of BAC.
A $10 broker fee paid half at purchase and half at sale could cost us $0.21 per share.
Subtract that $0.21 brokerage cost from my estimated $4.60 gross gain per share results in a net gain of $4.39 X 47 shares = $206.33 or a 20.63% net gain on a $992.64 investment.
Therefore, Bank Of America Corp, whose trading ticker symbol is BAC shows a possible 20.63% net gain including a 3.41% dividend yield. It could be more, it could be less.
The above speculation is based on past performance and supposition. Only time and money invested will tell if Bank Of America Corp is worth your time and money.
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