Current Report: U.S. Bancorp (USB)

U.S. Bancorp bears the ticker symbol USB, and this is my first mention of USB for my new Viking Portfolio, or any of my previous seven Dog of The Week Portfolios.

As a diversified financial-services provider, U.S. Bancorp is one of the nation's largest regional banks, with branches in well over 20 states.

The bank offers many services, including retail banking, commercial banking, trust and wealth services, credit cards, mortgages, and other payments capabilities.

As of December 31, 2021, the company provided its products and services through a network of 2,230 banking offices principally operating in the Midwest and West regions of the United States, as well as through on-line services, over mobile devices, and other distribution channels; and operated a network of 4,059 ATMs.

The company was founded in 1863 and is headquartered in Minneapolis, Minnesota.

Three key data points gauge U.S. Bancorp: (1) Price (2) Dividends (3) Returns.

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

USB Price

U.S. Bancorp’s price per share was $44.26 at Friday’s market close. However, in the past year, USB’s share price dropped $13.14 or near 23%;

If U.S. Bancorp’s stock trades in the range of $36.00 to $60.00 this next year, its recent $44.26 share price might reach $50.00 by next year. My upside increase estimate of $5.74 is about $2.04 below the median of annual target USB share price estimates from 22 analysts tracking USB’s stock price.

USB Dividends

U.S. Bancorp’s most recently declared quarterly dividend of $0.48 per share, equals  $1.92 annually to cast a yield of 4.34%.

USB Returns

Adding the  $1.92 annual USB dividend to my one-year price upside estimate of $5.74 reveals a $7.66 potential gross gain per share.

At Friday’s $44.26 closing price, a little over $1000 would buy 23 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.43 per share.

Subtract that maybe $0.43 brokerage cost from my estimated $7.66 gross gain per share results in a net gain of $7.23 X 23 shares = $166.29 for a 16.6% net gain including a 4.34% annual dividend yield.

In a year our $1K investment in shares of U.S. Bancorp would generate $43.40 in cash dividends. Of course, a single share of USB stock at Friday's $44.26 price is  almost $1.00 more than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is NOT a good time to buy U.S. Bancorp’s shares based on their dividends for the coming year 2023. The current dividend from $1K invested is $0.96 less than U.S. Bancorp’s single share price. Consider yourself alerted. Wait to buy USB until its price drops below $43.80.

All of the estimates above are speculation based on the past history of U.S. Bancorp. 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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