Current Analysis: Allianz SE

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Allianz (ALIZY) was founded as a transport and accident insurance firm in 1890 by Carl von Thieme and Wilhelm von Finck, the founders of Munich Re. It took the company five years to expand the business into Europe and North America and subsequently listed in Berlin.

After World War I, individuals were confronted with the loss of wealth, life, and security and Allianz founded a life business in the 1920s. In the years after World War II, Allianz’s foreign assets were seized and it lost its foreign business.

By relocating its head office from Berlin to Munich in 1948, Allianz began the long road of rebuilding its domestic business. It took 20 years for Allianz to reacquire its prior foreign interests, starting in Austria. It became the largest European insurer in the postwar boom era.

As mentioned, Allianz SE was founded in 1890 and is headquartered in Munich, Germany.

Three key data points gauge Volvo AB or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

ALIZY Price

Over the past year, Allianz's share price grew just over 29.3% from $22.21 to $28.72 as of Friday’s market close.

If Allianz shares trade in the range of $20 to $35.00 this next year, its recent $28.72 share price might rise to $31.85 by next year. Of course, Allianzs price could drop about the same $3.13 estimated amount or more.

My annual upside estimate of $3.13 however, reflects the median of price targets from three analysts tracking Allianz for brokers.

ALIZY Dividend

Allianz has paid variable annual dividends for the past five years.  Allianz’s most recent dividend of $1.49 was declared on March 22nd for shareholders of record on May 9th and paid tomorrow, May 28th.

A forward-looking $1.49 annual dividend yields 5.18% at Friday’s $28.72 share price.

ALIZY Returns

To put it all together, add the Allianz projected annual dividend of $1.49 to the estimated price upside of $3.13 to get a $4.62 estimated gross gain for the coming year.

At Friday’s $28.72 share price, a little over $1000 would buy 35 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.285 per share.

Subtracting that unlikely $0.285 brokerage cost from the $4.62 estimated gross gain reveals a net gain of $4.335 X 35 shares = $115.73 for about an 11.5% estimated net gain on the year.

You might choose to pounce on Allianz SE It is a 134-year-old dividend-paying German-based insurance and financial firm that has a five-year track record paying dividends. Furthermore, the $51.80 estimated dividend income from $1k invested is 1.8 times greater than ALIZY’s recent $28.72 share price.

The exact track of Allianzs upcoming future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


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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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