Daily Report: Associated Banc (ASB)

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Associated Banc-Corp, known by the ticker symbol ASB,  is a mid-cap WI regional bank, operating in the financial services business sector. This is my first report on ASB for this Viital portfolio or any of my previous six dog of the week portfolios.

Associated Banc-Corp is Wisconsin's second- largest bank with more than $20 billion in assets. Associated Banc-Corp was founded in 1861 and is headquartered in Green Bay, Wisconsin.

Half of its loans are in its home state, followed by 20% and 15% in neighboring Illinois and Minnesota, respectively. The rest are among 40 other states. About 30% of its portfolio is commercial real estate and construction loans. General commercial loans, home equity lines, and residential mortgages account for roughly 25%, 20%, and 20%, respectively

As of December 31, 2021, the company operated 215 banking branches. 

We use three key data points to gauge any dividend equity or fund such as Associated Banc-Corp (ASB): (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

Associated's price per share was $24.88 as of Friday's market close. One year ago its price was $20.78. Therefore Associated's share price increased $4.10 or 19.73% in the past year.

If Associated's stock trades in the range of $18.00 to $28.00 this next year, its recent $24.88 share price might rise by $1.00 to reach $25.88 by February 28, 2023. This estimate is $0.10 above the median of target prices estimated by 9 analysts covering Associated for their brokerages.

ASB Dividends

Associated's most recent quarterly dividend of $0.20 is payable March 15th, to shareholders on record as of February 28th.  The ASB  Annual estimated dividend payout per share of $0.80 yields 3.22% per yesterday's $24.88. closing price. 

Associated has paid regular quarterly dividend payouts generally increasing annually since May 2009. That stretch will mark 13 years come May.

ASB Returns

Adding the $0.80 annual Associated forward-looking dividend to its estimated one-year price upside of $1.00 shows a $1.80 potential gross gain, per share, to be reduced by any costs to trade ASB shares.  

At Friday's $24.88 price per share, a little under $1000 would buy 40 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.25 per share.

Subtract that maybe $0.25 brokerage cost from my estimated $1.80 gross gain estimate per share results in a net gain of $1.55 X 40 shares = $62.00 for a 6.2% net gain on a $995.20 investment.

So it is that Associated Banc-Corp (ASB) shows a possible 6.2% net gain including a 3.22% forward estimated dividend yield. 

Over the next year at this time our $1000 investment in Associated Banc-Corp (ASB) could generate $32.20 in cash dividends alone. Note that a single share of ASB stock bought at Friday's share price of $24.88 is nearly 30% greater than the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is a good time to pickup Associated Banc-Corp (ASB) shares. The estimated next-year dividend from $1K invested is 29.4% more than yesterday's single share price of ASB. Consider yourself alerted. It's a sign!  Now's the time!

All of the estimates above are speculation based on the past history of Associated Banc-Corp (ASB). Only time and money invested in this stock will determine its market value.

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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