Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.
This week the portfolio I'm building (my Safari To Sweet Success portfolio) seeks a high-yield and growing stock in the financial services sector.
The financial 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 Small-CapUS Regional Bank. The company's name is Mackinac Financial Corporation. Its trading ticker symbol is MFNC.
Mackinac Financial Corp. is a bank holding company. The company, through its subsidiary, is engaged in the general commercial banking business, providing a full range of loan and deposit products.
As of March 27, 2018, it operated 12 branches in the Upper Peninsula; 4 branches in the Northern Lower Peninsula; 1 branch in Oakland County, Michigan; and 7 branches in northern Wisconsin.
The company was formerly known as North Country Financial Corporation and changed its name to Mackinac Financial Corporation in December 2004.
Mackinac Financial Corporation was incorporated in 1974 and is headquartered in Manistique, Michigan.
I use three key data points gauge the value of any dividend equity or fund like Mackinac Financial Corporation (MFNC):
(1) Price
(2) Dividends
(3) Returns
After those three, four more keys will finally unlock an equity or fund in which to invest.
No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money.
MFNC Price
Mackinac's price was $15.50 per share at yesterday's market close. A year ago its price was $13.72 for a gain of $1.78 per share in the past year.
Assuming Mackinac's price will continue to trade in the range of $14.00 to $20.00 next year, its price could grow another $1.78 from $15.50 to $17.28 by June 1, 2019.
MFNC Dividends
Mackinac's most recently declared quarterly dividend was $0.12 per share paid in April. That $0.12 quarterly dividend equates to an estimated annual payout of $0.48 for 2018 which yields 3.1% at yesterday's $15.50 closing stock price.
Gains For MFNC?
The $1.28 estimated year over year price gain plus an anticipated dividend of$0.48 makes a projected gross annual gain of $2.26 per share, which will be reduced by the costs to trade those shares.
$1,000.00 invested today at the $15.50 price buys 65 shares.
A $10 broker fee paid half at purchase and half at sale subtracts$0.15 per share.
Taking that $0.15 brokerage cost out of the estimated $2.26 gross gain per share leaves a net gain of $2.11 X 65 shares = $137.15 or a 13.7% potential net gain on a $1,007.50 investment.
Therefore, Mackinac Financial Corporation (whose ticker symbol is MFNC), now shows a possible 13.7% net gain including a 3.1% dividend yield.
One analyst covers this stock:
She says "buy."
The median analyst recommendation is 1.0 or Buy and her price target is$1.70 above the estimated year over year number I just calculated.
Y Charts rates MFNC "neutral" for an overall "Y" rating. Y Charts also shows "Good" for a Value score of 9 out of ten points. And YCharts ranks MFNC average" with 6 out of 10possible Fundamental points. Y Charts Historic Valuation score is 5.71% overvalued, based on a $14.66 historic value multiple.
You could look at all those numbers like this: Mackinac Financial Corporation (MFNC) has made money, is making money, and could net an 13.7% net gain next year including a 3.1% dividend yield. It could be more, it could be less.
The above speculation is conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if Mackinac Financial Corporation (MFNC) is worth your time and money.
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