Daily Stock Analysis: Banco De Chile

Banco De Chile, bearing the ticker symbol (BCH), has never been reviewed any of my previous dog of the week portfolios. This, is the first mention of BCH for the Viking portfolio.

Operating under three separate brand names (Banco de Chile, Banco Edwards-Citi, and Banco CrediChile) Banco de Chile is the second largest in the country by loans and third largest by deposits.

Banco de Chile generates most of its net interest income (roughly 60% of total revenue) from its mortgage, unsecured consumer credit lines, and commercial loans, with 25% of its outstanding loans being made to firms with more than 10,000 million CLP in revenue.

Outside of its banking business, Banco de Chile is the largest asset manager in the country and one of the largest security brokerages, supporting its substantial fee-based revenue.

The company serves individuals, small and medium-sized companies, corporate clients, and large companies.

Banco de Chile was founded in 1893 and is headquartered in Santiago, Chile.

Three key data points gauge Banco de Chile or any dividend-paying firm. They are:

(1) Price

(2) Dividends

(3) Returns

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

BCH Price

Banco de Chile’s price per share was $22.42 at Monday’s market close. In the past year, BCH share price rose $4.63 or 26%.

If BCH stock trades in the range of $15.00 to $25.00 this next year, its recent $22.42 share price might rise to $22.50 by next year. It could go down about the same amount.

My upside estimate of $0.08 is

above the average annual price decline forecast by eleven analysts tracking the stock for brokers.

BCH Dividend

Banco de Chile’s A dividend was declared February 27 to be $2.15 as of its March 30, 2023  pay date to shareholders of record March 16th.

BCH Returns

Adding the $2.15 projected annual dividend to my $0.08 estimated price upside, reveals a $2.23 potential gross gain per share for the coming year.

At Monday’s $22.42 closing price, a little over $1000 would buy 45 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.22 per share.

Subtract that maybe $0.22 brokerage cost from my estimated $2.23 gross gain estimate makes a net amount of $2.01 X 45 shares = $90.45 or a 9% net gain.

In the next year our $1K investment in shares of BCH could generate about $95.80 in dividends. Furthermore, a single share of BCH at Monday’s $22.42 price is over 4.25 times less than the income estimated from $1000.00 invested.

So, by my dogcatcher ideal, this a time to consider BCH shares, based on their dividends for 2023. The dividend from $1k invested is 4.27 times greater than BCH’s single-share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of Banco de Chile. Only time and money invested in this stock will determine its future 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 solicitation, ...

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