Image Source: Pixabay

Associated Banc-Corp (ASB) is a bank holding company. The company through its subsidiaries provides a broad array of banking and nonbanking products and services to individuals and businesses.

The company operates in three reportable segments;  (1) Corporate and Commercial Specialty; (2) Community, Consumer, and Business; (3) and Risk Management and Shared Services. The majority of its revenue is derived from the first two, Corporate and Commercial Specialty and Community, Consumer, and Business segments.

Associated Banc-Corp was founded in 1861 and is headquartered in Green Bay, Wisconsin.

Three key data points gauge Associated Banc-Corp 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.

ASB Price

Over the past year, Associated’s share price fell about 26%, from $21.59 to $16.00 as of Friday’s market close.

If ASB stock trades in the range of $15.00 to $25.00 this next year, its recent $16.00 share price might rise to $19.00 by next year. Of course, ASB’s price could drop about the same $3.00 estimated amount, or more.

My upside estimate of $3.00, however, is about $0.65 below the median of 10 annual target price estimates from analysts tracking ABS for brokers.

ASB Dividend

Associated Banc-Corp has paid variable Quarterly dividends since November 15, 1993.  Associated’s most recent Q dividend, paid September 15th to shareholders of record August 31st, was $0.21.

That measures up to an annual forward looking yield of 5.25%.

ASB Returns

Adding the $0.84 anticipated annual dividend to ASB’s estimated $3.00 possible price upside reveals a $3.84 estimated gross gain per share for the coming year.

At Friday’s $16.00 closing price, a little over $1000 would buy 63 shares. A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.16 per share.

Subtracting that likely $0.16 brokerage cost from my estimated $3.84 estimated gross gain per share makes a net gain of $3.68 X 63 shares = $231.84 or about a 23% net gain.

This might be about time to pounce on ASB shares. But beware: Associated is a Wisconsin regional bank paying quarterly dividends for thirty years. Furthermore, the estimated $52.50 annual dividend from $1000 invested comes in at 3.28 times greater the recent $16.00 single share price. The question is, what future dividend payments and price changes lie ahead?

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

More By This Author:

Current Stock Analysis: Rexel S.A.
Current Analysis: Iomart Group
Current Analysis: Datatec