United Bankshares Inc, known by the ticker symbol UBSI, is a mid cap West Virginia regional bank, operating in the financial services business sector. This is my second report on United Bankshares Inc. for this Viital stock portfolio. I last reviewed it on October 5th.

United Bankshares Inc. is a financial holding company that provides banking services. 

Photo by Museums Victoria on Unsplash

The company operates in two segments: (1) community banking, which accepts deposits, makes loans (for a personal, credit card, commercial, and construction uses), provides brokerage services, safe deposit boxes, and related services; and (2) mortgage banking, which offers and acquires home mortgages through an indirectly owned subsidiary. 

Nearly all revenue comes from the community banking segment. The bank offers services in West Virginia, Virginia, Maryland, Ohio, Pennsylvania, and the District of Columbia.

As of January 28, 2021, the company operated 230 offices in West Virginia, Virginia, Ohio, Pennsylvania, Maryland, North Carolina, South Carolina, Georgia, and Washington, D.C. 

United Bankshares, Inc. was incorporated in 1982 and is headquartered in Charleston, West Virginia.

Three key data points gauge any dividend equity or fund such as United Bankshares Inc (UBSI):

(1) Price

(2) Dividends

(3) Returns

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

UBSI Price

United's price per share was $37.32 as of yesterday's market close. One year ago its price was $34.73. Therefore United's share price rose $2.59 or just under 7.5% in the past year.

If United's stock trades in the range of $32.00 to $42.00 this next year, its recent $37.32 share price might rise by $2.68 to reach $40.00  by January 25, 2023. This estimate is in line with the median of 1year target estimates from the five analysts tracking United for their brokerages.

UBSI Dividends

United Bankshare's most recent quarterly dividend of $0.36 was paid to shareholders on January 3rd, 2022 to those of record December 1st. The estimated Annual dividend payout of $1.44 yields 3.86% per yesterday's $37.32. closing price. 

United Bankshares Inc (UBSI) has paid regular quarterly dividend payouts increasing annually since December 1984. That stretch will mark 38 years in December.

UBSI Returns

Adding the $1.44 annual estimated UBSI forward-looking dividend to the estimated one-year share price upside estimate of $2.68 shows a $4.12 potential gross gain, per share, to be reduced by any costs to trade UBSI shares.  

At yesterday's $37.32 price per share, a little over $1000 would buy 27 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.37 per share.

Subtract that maybe $0.37 brokerage cost from my estimated $4.12 gross gain estimate per share results in a net gain of $3.75 X 27 shares = $101.25 for a 10.12% net gain on a $1,007.64 investment.

So it is that United Bankshares Inc (UBSI) shows a possible 10.12% net gain including a 3.86% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in United Bankshares Inc (UBSI) could generate $38.60 in cash dividends alone. Note that a single share of UBSI stock bought at yesterday's closing price was $37.32. Therefore, UBSI's share price is just about $1.28 below the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is a good point to pick up United Bankshares Inc (UBSI) shares. The estimated next-year dividend from $1K invested is  $1.28  higher than UBSI's single share price. Consider yourself alerted. It's a sign!  

All of the estimates above are speculation based on the past history of United Bankshares Inc (UBSI). Only time and money invested in this stock will determine its market value.