Daily Stock Analysis: AllianceBernstein Holding

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AllianceBernstein Holding LP bears the ticker symbol AB, and this is my first mention of AllianceBernstein for my new Viking Portfolio or any of my previous Dog of The Week Portfolios.

AllianceBernstein provides investment management services to institutional (46% of assets under management), retail (38%), and private (16%) clients through products that include mutual funds, hedge funds, and separately managed accounts.

At the end of September 2022, AB had $612.7 billion in managed assets, composed primarily of fixed-income (41% of AUM) and equity (42%) strategies, with other investments (made up of asset allocation services and certain other alternative investments) accounting for the remainder.

The company also provides sell-side research and brokerage services through its Sanford Bernstein subsidiary.

The firm conducts in-house research to make its investments.

AllianceBernstein Holding L.P. was founded in 1987 and is based in New York, New York.

Three key data points gauge AllianceBernstein Holding LP:

(1) Price

(2) Dividends

(3) Returns

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

AB Price

AllianceBernstein’s price per share was $39.03 at Friday’s market close. In the past year, AB’s share price declined by $1.51, or about 22.6%.

If AllianceBernstein’s stock trades in the range of $24.00 to $43.00 this next year, its recent $39.03 share price might reach $40.00 by next year. That upside estimate of $0.97 is about $3.50 above the median of one-year target estimates from the six analysts covering AB for brokers.

AB Dividends

AllianceBernstein’s most recent quarterly dividend of $0.64 equates to $2.56 annually and casts a forward yield of 6.56%.

AB Returns

Adding the $2.56 annual estimated AB dividend to my one-year price upside estimate of $0.97 reveals a $3.53 potential gross gain per share.

At Friday’s $39.03 closing price, a little under $1000 would buy 26 shares.

A $10 broker fee (if charged), paid half at purchase and a half at the sale, might cost us about $0.38 per share.

Subtracting that maybe $0.38 brokerage cost from my estimated $3.53 gross gain makes a net gain of $3.15 X 26 shares = $81.90 for an 8.15% net gain including a 6.56% annual dividend yield.

In the next year, our $1K investment in shares of AllianceBernstein Holding LP would generate $65.60 in cash dividends. Of course, a single share of AB stock at Friday's $39.03 price is about 1.7 times less than the estimated annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this looks like a good time to buy AB shares based on their dividends for 2023. The current dividend from $1K invested is 1.68 times greater than the AB single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of AllianceBernstein Holding LP. Only time and money invested in this stock will determine its future 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 solicitation, ...

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