Daily Stock Pick: Invesco

This week, I'm looking for the fifth financial services representative of seven for my Ivy portfolio.

The financials sector includes nineteen industries all related to managing money: asset management; banks either global or from any of seven regions, capital markets, credit services, financial exchanges, insurance in six specializations, savings banks, and specialty finance.

Today I'm reviewing a mid-cap asset management firm named Invesco Ltd. Its trading ticker symbol is IVZ.

Invesco Ltd provides investment management services to both retail (2/3 of managed assets) and institutional (1/3) clients. At the end of 2018, the firm had $888.2 billion in assets under management spread out among its equity, balanced, fixed income, alternative investment, and money market operations.

Invesco's U.S. retail business is one of the 10 largest nonproprietary fund complexes in the country. The firm also has a meaningful presence outside of the U.S., with 72% of its total AUM sourced from Canada, the U.K., continental Europe, and Asia.

The firm was formerly known as Invesco Plc, AMVESCAP plc, Amvesco plc, Invesco PLC, Invesco MIM, and H. Lottery & Co. Ltd. Invesco Ltd. was founded in December 1935 and is based in Atlanta, Georgia with an additional office in Hamilton, Bermuda.

I use three key data points to gauge the value of any dividend equity-like Invesco Ltd:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

IVZ Price

Invesco's price per share closed at $20.64 yesterday. A year ago its price was $28.80. Price fell $8.16 or 28.3% in the past year.

Assuming Invesco's stock trades in the range of $16.00 to $26.00 this year,

Invesco's recent $20.64 price could rise by $1.36 and go to $22.00 by mid- May 2020.

IVZ Dividends

Invesco's most recent declared quarterly dividend was $0.31 declared April 25th and payable, June 3rd.

That $0.31 Q dividend equates to an annual payout of $1.24 for a yield of 6.01% at yesterday's $20.64 closing price.

Gains For IVZ?

Adding a $1.24 annual estimated dividend to my $1.36 estimate of Invesco's price upside shows a $2.60 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we pay a little under $1,000.00 today at the $20.64 recent stock price would buy us 48 Invesco Ltd shares.

A $10 broker fee paid half at purchase and half at sale will cost us $0.21 per share.

Subtract that $0.21 brokerage cost from the estimated $2.60 gross annual gain leaves a net gain of $2.39 X 48 shares = $114.72 or an 11.5% net gain on a $990.72 investment.

Therefore, Invesco Ltd whose trading ticker symbol is IVZ now shows a possible net gain of 11.5% including a 6.01% dividend yield.

Seventeen brokers cover Invesco Ltd stock:

Two say "buy" IVZ.

Two say IVZ will "outperform".

Twelve say "hold" IVZ.

One says "sell" IVZ.

The consensus score is 2.77 or "hold".

Therefore, you can look at Invesco Ltd and see it has made money, is making money, and could net an 11.5% gain including a 6.01% 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 determine if Invesco Ltd is worth your time and money.