A portfolio of stocks I've been building since September 3 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 fifth of five financial services stocks striving to join my Volio folio. This could be my twenty-third 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 micro-cap regional bank named, Eagle Financial Services Inc. Their trading ticker symbol is EFSI. This is my third report for Eagle Financial Services Inc. My most recent report on EFSI was aired on December 24, 2019. For this very Volio Folio.
Eagle Financial Services Inc is a locally owned and managed financial institution. The bank conducts its operations through its subsidiary, Bank of Clarke County in Virginia. It offers retail and commercial banking services, including demand, savings and time deposits and consumer, mortgage, and commercial loans. It also offers telephone banking, internet banking, and mobile banking to its customers. Its branches are located in the counties of Clarke, Frederick and Loudoun, the towns of Purcellville, Leesburg, and Ashburn, and the City of Winchester.
Eagle Financial Services, Inc. was founded in 1881 and is headquartered in Berryville, Virginia.
I use three key data points to gauge dividend equities or funds like Financial Services Inc:
(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.
EFSI Price
Eagle's price per share closed at $32.50 yesterday. A year ago its price was $32.05. So, in the past year, its market price rose by $0.45, or just over 1.4%.
Assuming Eagle's stock trades in the range of $30 to $35 this next year, its recent $32.50 price could rise by $2.50 to reach $35 by February 7, 2021, assuming upward price momentum continues.
EFSI Dividends
Eagle's latest declared quarterly dividend was $0.26, payable February 17. That $0.26 Q dividend equates to an annual payout of $1.04 and yields 3.2% at yesterday's $32.50 share price.
EFSI Gains?
Adding the $1.04 annual estimated dividend to my $2.50 estimate of Eagle Financial Services Inc price upside shows a $3.54 potential gross gain, per share, which will be reduced by any costs to trade those shares.
Over $1,000.00 today in Eagle Financial Services Inc at its recent $32.50 price, would buy 31 shares of EFSI.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.32 per share.
Subtract that $0.32 brokerage cost from the estimated $3.54 gross estimated gain per share leaves a net gain of $3.22 X 31 shares = $99.82 or a 9.8% net gain on a $1.007.50 investment.
Therefore, Eagle Financial Services Inc, whose trading ticker symbol is EFSI shows a possible 9.8% net gain including a 3.2% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if Eagle Financial Services Inc, is worth your time and money.
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