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 first 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 mid-cap asset management firm named, SBI Holdings Inc. Their trading ticker symbol is SBHGF. This is my first report for SBI Holdings Inc.
SBI Holdings Inc is a financial conglomerate that offers a variety of services in securities, banking, and insurance.
Operations are divided into financial services, asset management, and biotechnology-related business. Many of the traditional financial offerings fall under the financial services arm and include housing loans and foreign exchange margin trading in addition to the primary banking and insurance businesses.
Under the asset management business, the group invests in Japanese and international venture companies that operate in IT, biotechnology, environment/energy, and finance.
Aside from financial services, cosmetics, health foods, and drugs are developed by subsidiaries in the biotech-related business.
The company was formerly known as Softbank Investment Corporation and changed its name to SBI Holdings, Inc. in July 2005. SBI Holdings, Inc. was founded in 1999 and is headquartered in Tokyo, Japan.
I use three key data points to gauge dividend paying equities or funds like SBI Holdings 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.
SBHGF Price
SBI Holdings's price per share closed at $23.13 yesterday. A year ago its price was $20.69. So, in the past year, its market price grew by $2.44, or just about 11.8%.
Assuming SBI Holdings stock trades in the range of $20 to $30 this next year, its recent $23.13 price could rise by $1.87 to reach $25.00 by February 3, 2021, assuming upward price momentum continues.
SBHGF Dividends
SBI Holdings's latest declared annual dividend was $0.72, paid June 13. That $0.72 A dividend yields 3.13% at yesterday's $23.13 share price.
SBHGF Gains?
Adding the $0.72 annual estimated dividend to my $1.87 estimate of SBI Holdings Inc price upside shows a $2.59 potential gross gain, per share, which will be reduced by any costs to trade those shares.
As for costs, if we put a little under $1,000.00 today in SBI Holdings Inc at its recent $23.13 price, would buy 43 shares of SBHGF.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.23 per share.
Subtract that $0.23 brokerage cost from the estimated $2.59 gross estimated gain per share leaves a net gain of $2.36 X 43 shares = $101.48 or a 10.15% net gain on a $994.59 investment.
Therefore, SBI Holdings Inc, whose trading ticker symbol is SBHGF shows a possible 10.15% net gain including a 3.13% 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 SBI Holdings Inc, is worth your time and money.
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