Norwood Financial Corp known by the ticker symbol NWFL, is a small cap Pennsylvania regional bank, operating in the financial services business sector. This is my second report on Norwood for this Viital stock portfolio. I last reviewed it on October 4th.

Norwood Financial Corp is a US-based bank holding company. It offers various personal and business credit services, trust and investment products, and real estate settlement services to the consumers, businesses, nonprofit organizations, and municipalities in each of the communities that the bank serves. The bank also manages automated teller machines at its branch location. It primarily serves the Pennsylvanian counties of Wayne, Pike, Monroe, and Lackawanna, as well as the Susquehanna County.

It operates fourteen offices in Northeastern Pennsylvania; and sixteen offices in Delaware, Sullivan, Ontario, Otsego, and Yates Counties, New York, as well as thirty-one automated teller machines. 

The company was founded in 1870 and is headquartered in Honesdale, Pennsylvania.

Photo by Etienne Martin on Unsplash

Three key data points gauge any dividend equity or fund such as Norwood Financial Corp (NWFL):

(1) Price

(2) Dividends

(3) Returns

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

NWFL Price

Norwood Financial's price per share was $27.46 as of Friday's market close. One year ago its price was $25.10. Therefore Norwood's share price rose $2.36 or just over 9.4% in the past year.

If Norwood's stock trades in the range of $24.00 to $30.00 this next year, its recent $27.36 share price might rise by $1.04 to reach $28.50  by January 24, 2023. This estimate is in line with the company's past ten-year stock price performance

NWFL Dividends

Norwood Financial's most recent quarterly dividend of $0.28 is payable to shareholders February 1st, 2022 to those of record January 13th. The estimated Annual dividend payout of $1.12 yields 4.08% per Friday's $27.46. closing price. 

Norwood Financial Corp (NWFL) has paid regular quarterly dividend payouts increasing annually since August 1998. That stretch will mark 24 years in August.

NWFL Returns

Adding the $1.12 annual estimated NWFL forward-looking dividend to the estimated one-year share price upside estimate of $1.04 shows a $2.16 potential gross gain, per share, to be reduced by any costs to trade NWFL shares.  

At Friday's $27.46 price per share, a little under $1000 would buy 36 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.28 per share.

Subtract that maybe $0.28 brokerage cost from my estimated $2.16 gross gain estimate per share results in a net gain of $1.88 X 36 shares = $67.68 for a 6.77% net gain on a $988.56 investment.

So it is that Norwood Financial Corp (NWFL) shows a possible 6.77% net gain including a 4.08% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Norwood Financial Corp (NWFL) could generate $40.80 in cash dividends alone. Note that a single share of NWFL stock bought at Friday's closing price was $27.46. Therefore, NWFL's share price is just about three-quarters of the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is a good point to pick up Norwood Financial Corp (NWFL) shares. The estimated next-year dividend from $1K invested is nearly 1.5  times higher than NWFL's single share price. Consider yourself alerted. It's a sign!  

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