Daily Stock Analysis: Citigroup Inc

By Fredrik Arnold
Wednesday, November 30, 2022 5:00 AM EDT

Citigroup Inc bears the ticker symbol (C), and this is my first mention of Citigroup for my new Viking Portfolio, but it has shown up as a candidate for one or more of my previous seven Dog of The Week Portfolios.

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Citigroup is a global financial services company doing business in more than 100 nations and states.

Citigroup's operations are organized into two primary segments: the global consumer banking segment and the institutional clients group. The bank's primary operations are cross-border banking needs for multinational corporates, investment banking and trading, and credit card services in the United States.

As of December 31, 2020, it operated 2,303 branches primarily in the United States, Mexico, and Asia.

Citigroup Inc. was founded in 1812 and is headquartered in New York, New York.

Three key data points gauge Citigroup Inc.

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

C Price

Citigroup’s price per share was $47.60 at Tuesday’s market close. However, in the past year, Citgroup’s share price dropped $17.44 or nearly 27%.

If Citigroup’s stock trades in the range of $36.00 to $60.00 this next year, its recent $47.60 share price might reach $54.00 by next year. My upside increase estimate of $6.40 is about $2.20 below the median of annual target Citigroup share price estimates from the twenty-two analysts tracking Citi’s stock prospects.

C Dividends

Citigroup Inc’s most recently declared quarterly dividend of $0.51 per share, equals  $2.04 annually to cast a yield of 4.29%.

C Returns

Adding the $2.04 annual Citi dividend to my one-year price upside estimate of $6.40 reveals a $8.44 potential gross gain per share.

At Tuesday’s $47.60 closing price, a little under $1000 would buy 21 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.48 per share.

Subtract that maybe $0.48 brokerage cost from my estimated $8.44 gross gain per share results in a net gain of $7.96 X 21 shares = $167.16 for a 16.7% net gain including a 4.29% annual dividend yield.

In a year our $1K investment in shares of Citigroup Inc would generate $42.90 in cash dividends. Of course, a single share of Citi stock at Tuesday's $47.60 price nearly $5.00 more than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a poor time to buy Citigroup Inc’s shares based on their dividends for the coming year 2023. The current dividend from $1K invested is $4.70 less than Citi’s single share price. Consider yourself alerted. Wait for Citigroup Inc’s price to drop to $45.00 or lower.

All of the estimates above are speculation based on the past history of Citigroup Inc. Only time and money invested in this stock will determine its market value.

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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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