Daily Stock Pick: Ping An Insurance

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 third 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 mid-cap life insurance company named, Ping An Insurance (Group) Co. of China Ltd. Their trading ticker symbol is PNGAY. This is my first ever report on Ping An Insurance (Group) Co. of China Ltd.

Ping An Insurance (Group) Co. of China Ltd is a major provider of financial products and services, with a focus on life insurance and property and casualty insurance. Ping An is China's second-largest life and P&C insurer. The company strives for an integrated financial services platform comprising life insurance, P&C insurance, banking, securities and trust, asset management and technology.

The company was founded in 1988 and is based in Shenzhen, China.

I use three key data points to gauge dividend equities or funds like Ping An Insurance (Group) Co. of China Ltd:

(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.

PNGAY Price

Ping An's price per share closed at $19.36 yesterday. A year ago their price was $21.67. Thus, in the past year, their market price dropped $2.31 or about 10.66%.

Assuming Ping An's stock trades in the range of $18 to $24 this next year, its recent $19.36 price might rise by $4.74 to reach $20.00  by March 24, 2021, assuming upward price momentum returns.

PNGAY Dividends

Ping An's last declared semi-annual dividend was $0.2136 paid on October 21st. That $0.2136 SA dividend resulted in an annual payout of $0.54 to yield 2.8% at yesterday's $19.36 share price.

PNGAY Gains?

Adding the $0.54 annual estimated dividend to my $2.31 estimate of  Ping An Insurance (Group) Co. of China Ltd price upside shows a $2.85 potential gross gain, per share, which will be reduced by any costs to trade those shares.

If we put a little over $1,000.00 today in Ping An Insurance (Group) Co. of China Ltd at its recent $19.36  share price, we'd buy 52 shares of PNGAY.

A $10 broker fee paid half at purchase and half at sale could cost us  $0.19 per share.

Subtract that $0.19 brokerage cost from my estimated $3.85 gross gain per share results in a net gain of $3.66 X 52 shares = $190.32 or a 19.00% net gain on a $1,006.72 investment.

Therefore, Ping An Insurance (Group) Co. of China Ltd, whose trading ticker symbol is PNGAY shows a possible 19.00% net gain including a 2.8% 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 Ping An Insurance (Group) Co. of China Ltd is worth your time and money.