Wednesday, October 19, 2022 4:16 AM EDT
Bank of N.T. Butterfield & Son, ticker (NTB), is a small-cap diversified banking firm in the financial services business sector. It is, as I said, the third of five financial services candidates vying to be the third selection for my Viking folio. This is not my first report on NTB. I have discussed it previously and selected it as the 30th member of my previous Dog of the Week portfolio, named Viital.
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Bank of N.T Butterfield & Son Ltd is a full-service bank and wealth manager.
It operates the business through three geographic segments, Bermuda, the Cayman Islands, the Channel Islands and the UK. The company offers banking services, comprised of retail and corporate banking, and wealth management, which consists of trust, private banking, and asset management.
It generates a majority of its revenue from Bermuda, and the Cayman Islands segments.
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The company operates through offices in the Cayman Islands, Guernsey, Jersey, the United Kingdom, The Bahamas, Switzerland, Singapore, Mauritius, and Canada.
It also operates through 3 branches in Bermuda and 4 branches in the Cayman Islands. The Bank of N.T. Butterfield & Son Limited was founded in 1858.
Three key data points gauge
Bank of N.T Butterfield & Son Ltd:
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(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
NTB Price
Butterfield’s price per share was $35.57 at Tuesday’s market close. In the past year, NTB’s share price fell by $3.62 or about 9.25%.
If Butterfield’s stock trades in the range of $25.00 to $45.00 this next year, its recent $35.57 per share price might reach $42.00 by next year. My upside increase estimate of $6.43 is $0.40 under the average price upside forecast by 5 analysts tracking the stock for brokerages.
NTB Dividends
Butterfield’s most recently declared quarterly dividend of $0.44 per share equals $1.76 annually and casts a yield of 4.95%.
NTB Returns
Adding the $1.76 annual
Bank of N.T Butterfield & Son Ltd dividend to my one-year price upside estimate of $6.43 shows a $8.19 potential gross gain per share.
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At Tuesday’s $35.57 closing price, a little under $1000 would buy 28 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us $0.36 per share.
Subtract that maybe $0.36 brokerage cost from my estimated $8.19 gross gain per share results in a net gain of $7.83 X 28 shares = $219.24 for a 21.9% net gain including a 4.95% annual yield.
In a year our $1K investment in shares of Bank of N.T Butterfield & Son Ltd could generate $49.50 in cash dividends. Of course, a single share of NTB stock at Friday's $35.57 share price is nearly $14 less than the annual dividend income from our $1000.00 investment.
So, by my dogcatcher ideal, this is still a good time to buy NTB shares based on their dividends for the year 2022. The dividend from $1K invested is $13.93 greater than yesterday’s single share price. Consider yourself alerted. Now IS the time for NTB.
All of the estimates above are speculation based on the past history of Bank of N.T Butterfield & Son Ltd. Only time and money invested in this stock will determine its market value.
More By This Author:
Current Report: Manulife Financial
Current Report: New York Community Bancorp (NYCB)
Daily Stock Pick: John Wiley & Sons
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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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, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.
Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts.
Catch Your Underdog Daily Dividend on Facebook!
At 8:45 AM every NYSE trading day on Facebook/ Dividend Dog Catcher Fredrik Arnold does a quick live video summary of one stock contending for a weekly slot on his new Viital portfolio.
Today he followed this script on his Underdog Daily Dividend Show!
Always remember: Root for the Underdog.
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