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 second of four financial services sector stocks striving to join my Volio folio. This could be the seventeenth 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 another micro-cap regional bank, named, Eagle Financial Services Inc. Their trading ticker symbol is EFSI. This is my first report on EFSI.
Eagle Financial Services Inc is a locally owned and managed financial institution. The bank conducts its operations through its subsidiary, Bank of Clarke County, 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-paying equities or funds like Eagle 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 $31.30 yesterday. A year ago its price was $29.50. So, in the past year, its price moved up $1.80, or over 6.1%.
Assuming Eagle's stock trades in the range of $20 to $35 this next year, it's recent $31.30 price could rise by $1.70 to reach $33.00 by late-December, 2020, assuming upward price momentum resumes.
EFSI Dividends
Eagle's latest declared quarterly dividend was $0.26 per share paid November 15th.
That $0.26 Q dividend equates to $1.04 annually and yields 3.32% based on yesterday's $31.30 closing price.
EFSI Gains?
Adding the $1.06 annual estimated dividend to my $1.70 optimistic estimate of Eagle's price upside shows a $2.76 potential gross gain, per share, which will be reduced by any costs to trade these shares.
As for costs, if we put a little over $1,000.00 today in Eagle Financial Services Inc at its recent $31.30 price, would buy 32 shares of EFSI.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.31 per share.
Subtract that $0.31 brokerage cost from the estimated $2.76 gross estimated gain per share leaves a net gain of $2.45 X 32 shares = $78.40 or a 7.84% net gain on a $1,001.60 investment.
Therefore, Eagle Financial Services Inc, whose trading ticker symbol is EFSI shows a possible 7.84% net gain including a 3.32% 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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