Daily Stock Pick: Southside Bancshares - Monday, April 8

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

That financial services sector includes six industries all Financial Services includes twenty industries ranging from Asset Management to 8 kinds of Banks, Credit, Exchanges, 6 kinds of Insurance, Savings, and all such financial concerns.

Today I'm reviewing a small-cap bank - regional -US named Southside Bancshares, Inc. Its trading ticker symbol is SBSI.

Southside Bancshares Inc is a financial institution offering financial services to individuals, businesses, municipal entities, and non-profit organizations.

It's various services include personal banking, business banking, mortgage, and equity lending, wealth management and trust, and brokerage. The bank generates its revenue in the form of interest income, gains on sales of assets, and fee income.

The company operates through 59 branches and 40 motor bank facilities located in and around Arlington, Austin, Bullard, Chandler, Tyler, Watauga, Weatherford, and Whitehouse cities in Texas; and a network of 83 automated teller machines

Southside Bancshares, Inc. was founded in 1960 and is headquartered in Tyler, Texas.

I use three key data points to gauge the value of any dividend equity-like Southside Bancshares, Inc:

(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.

SBSI Price

Southside's price per share closed at $34.18 Friday. A year ago its price was $34.29. The price fell $0.11 or 0.3% in the past year.

Assuming Southside's stock trades in the range of $30 to $40 this year, Southside's recent $34.18 price could rise by $1.82 and go to $36.00 by early-April, 2020.

SBSI Dividends

Southside's most recent Quarterly dividend was $0.30 declared February 8th and paid, on March 7th.

That $0.30 Q dividend equates to an annual payout of $1.20 or a yield of 3.5% at yesterday's $34.18 closing price.

Gains For SBSI?

Adding the $1.20 annual estimated dividend to my $1.82 estimate of Southside's price upside shows a $3.02 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we put a little under $1,000.00 today at the $34.18 recent stock price would buy us 29 Southside Bancshares, Inc. shares.

A $10 broker fee paid half at purchase and half at sale costs $0.34 per share.

Subtract that $0.34 brokerage cost from the estimated $3.02 gross annual gain leaves a net gain of $2.68 X 29 shares

= $77.72 or a 7.8% net gain on a $991.22 investment.

Therefore, Southside Bancshares, Inc. whose trading ticker symbol is SBSI, now shows a possible net gain of about 7.8% including a 3.5% dividend yield.

Five brokers cover this stock:

All five say "hold" SBSI.

Therefore, you can look at  Southside Bancshares, Inc. and see it has made money, is making money, and could net 7.8% gains including a 3.5% 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 Southside Bancshares, Inc. is worth your time and money.