Image Source: Unsplash

Emclaire Financial Corp goes by the ticker symbol EMCF and is a member of the financial services business sector as a Pennsylvania regional bank. This is my first report on Emclaire Financial Corp for this Vista folio.

Emclaire Financial Corp operates as the bank holding company for The Farmers National Bank of Emlenton that provides retail and commercial financial products and services to individuals and businesses in western Pennsylvania 

The bank's principal business consists of attracting deposits from the general public and investing such funds in real estate loans secured by liens on the residential and commercial property, consumer loans, commercial business loans, marketable securities, and interest-earning deposits. 

Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential and commercial mortgages, commercial business loans, and consumer loans.

The company operates a network of 20 retail branch offices in Venango, Allegheny, Butler, Clarion, Clearfield, Crawford, Elk, Jefferson, and Mercer counties, Pennsylvania, as well as Hancock County, West Virginia. The company was founded in 1900 and is headquartered in Emlenton, Pennsylvania.

Three key data points gauge dividend equities or funds like Emclaire Financial Corp:

(1) Price

(2) Dividends

(3) Returns

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

EMCF Price

Emclaire price per share was $28.75 as of yesterday's market close. One year ago its price was $23.10. Thus, price per share grew by nearly 24.5% in the past year as the market recovered from Covid doldrums. 

Should EMCF's stock trade in the range of $20 to $32.00 this next year, its recent $28.75 price might rise by $1.25 to reach $30.00 by June 23, 2022. My estimate corresponds to the average annual EMCF price gains over the past ten years

EMCF Dividends

Emclaire Financial Corp's most recently declared quarterly dividend payout of $0.30 was paid on June 18th and equates to $1.20 annually which will yield 4.17% based on yesterday's $28.75 closing price. EMCF has paid quarterly dividends increasing annually for 10 years.

EMCF Returns

Adding the $1.20 annual EMCF forward-looking dividend to my $1.25 price upside estimate shows a $2.45 potential gross gain, per share, to be reduced by any costs to trade Emclaire Financial Corp.  

At yesterday's $28.75 price per share, a little over $1000 would buy 35 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.29 per share.

Subtract that maybe $0.29 brokerage cost from my estimated $2.45 gross gain per share results in a net gain of $2.16 X 35 shares = $75.60 for a 7.56% net gain on a $1,006.25 investment.

So it is that  Emclaire Financial Corp shows a possible 7.58% net gain including a 4.17% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in EMCF would generate $41.70 in cash dividends. And a single share bought at Friday's closing price was $28.75! So, EMCF's share price is just over half of the dividend income from $1K invested. Thus, according to dogcatcher preference, this is an opportune time to invest in Emclaire Financial Corp shares for long-term dividend income.

All of the estimates above are speculation based on the past history of Emclaire Financial Corp. Only time and money invested in this stock will determine its true worth.