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Bank of L.T. Butterfield & Son Ltd, known by the ticker symbol NTB, is a small-cap diversified bank, operating in the financial services business sector in Bermuda. This is my first report on Bank of L.T. Butterfield & Son Ltd for this Viital portfolio or any of my previous six dog of the week portfolios.

Bank of N.T Butterfield & Son Ltd is a full-service bank and wealth manager.

The company offers banking services, comprised of retail and corporate banking, and wealth management, which consists of trust, private banking, and asset management.

The company operates through offices in the Cayman Islands, Guernsey, Jersey, the United Kingdom, The Bahamas, Switzerland, Singapore, Mauritius, and Canada.

It generates a majority of its revenue from Bermuda, and the Cayman Islands segments through 3 branches in Bermuda and 4 branches in the Cayman Islands.

The Bank of N.T. Butterfield & Son Limited was founded in 1858 and is headquartered in Hamilton, Bermuda.

Three key data points gauge any dividend equity or fund such as Bank of N.T. Butterfield & Son Ltd (NTB)

(1) Price

(2) Dividends

(3) Returns

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

NTB Price

Butterfield’s price per share was $32.78 as of yesterday's market close. One year ago its price was $38.87. Therefore, Butterfield’s share price fell $7.09 or about 15.67% in the past year.

If Butterfield’s stock trades in the range of $30.00 to $45.00 this next year, its recent $32.78 share price might rise by $7.22 to reach $40.00 by April 28, 2023. My $7.22 upside estimate is $7.40 less than the median price upside gauged by five analysts tracking NTB for their brokerages.
 

NTB Dividends

Butterfield’s most recently declared a quarterly dividend of $0.44 was paid on March 14th to shareholders on record as of February 25th.

Bank of N.T. Butterfield & Son Ltd paid its first quarterly dividend on November 28, 2016. The dividend has been increasing steadily from $0.10 to $0.44 over the past 5 years and its annual payout of $1.76 is estimated to deliver a 5.37% annual yield per yesterday’s $32.78 share price.
 

NTB Returns

Adding the $1.76 NTB annual dividend to the estimated one-year price upside of $7.22 shows an $8.98 potential gross gain, per share, to be reduced by any costs to trade NTB shares.

At yesterday's $32.78 closing price per share, a little over $1000 would buy 31 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.32 per share.

Subtract that maybe $0.32 brokerage cost from my estimated $8.98 gross gain estimate per share results in a net gain of $8.66 X 31 shares = $268.46 for a 26.8% net gain on a $1,016.78 investment.

So it is that Bank of N.T. Butterfield & Son Ltd (NTB) shows a possible 26.8% net gain including a 5.37% forward-looking dividend yield.

Over the next year at this time, our $1000 investment in NTB generates $53.70 in cash dividends alone. Note that a single share of NTB stock bought at yesterday's $32.78 price is over 1.5 times less than the anticipated dividend income from our $1000.00 invested. So, by my dogcatcher ideal, this may be the right time to buy NTB shares based on their declared 2022 dividend. The forthcoming annual dividends from $1K invested is currently 1.64 times greater than yesterday's single share price. Consider yourself alerted. It's a sign. Go for the dividend!

All of the estimates above are speculation based on the past history of Bank of N.T. Butterfield & Son Ltd (NTB) . Only time and money invested in this stock will determine its market value.