Source: Unsplash 

Today we look at a California regional bank named Heritage Commerce Corp. Its trading ticker symbol is HTBK. This is my first ever report on Heritage Commerce Corp for this portfolio or any of my previous portfolios.

Heritage Commerce Corporation operates as a California regional bank holding company. 

The company through its subsidiary offers commercial banking services to small and medium-sized businesses and their owners, managers, and employees. 

It operates through two segments namely Banking Segment and Factoring Segment. The bank generates a majority of its revenue from the Banking segment.

The company provides its banking products and services through 19 full-service branch offices located in the general San Francisco Bay Area of California in the counties of Alameda, Contra Costa, Marin, San Benito, San Francisco, San Mateo, and Santa Clara.

Heritage Commerce Corp was founded in 1997 and is headquartered in San Jose, California.

Three key data points gauge dividend equities or funds like Heritage Commerce Corp:

(1) Price

(2) Dividends

(3) Returns

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

HTBK Price

Heritage's price per share closed at $9.68 yesterday. A year ago its price was $11.36. Price per share has not recovered from the Covid recession, being 15% below the past year's mark. 

If Heritage Commerce Corp stock trades in the range of $6 to $12 this next year, its recent $9.68 price might rise by $0.32 to reach $10.00 by February 25, 2022. That's in line with the company's analyst expectation. 

HTBK Dividends

Heritage's most recently declared quarterly dividend was $0.13 payable on February 26th. Dividends are estimated to total $0.52 per share annually and yield 5.37% at yesterday's $9.68 closing price. 

HTBK Returns

Adding the $0.52 annual HTBK anticipated dividend to my $0.32 price upside shows a $0.84 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little under $1,000.00 today in Heritage Commerce Corp at $9.68 per share and we'd buy 103 shares of HTBK stock.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.10 per share.

Subtract that maybe $0.10 brokerage cost from my estimated  $0.84 gross gain per share results in a net gain of $0.74 X 103 shares = $76.22 for a 7.62% net gain on a $997.04 investment.

Heritage Commerce Corp shows a possible 7.62% net gain including a 5.37% dividend yield. 

Over the next year at this time, a $1000 investment would generate $53.70 in cash dividends. And a single share bought at yesterday's closing price was under $10.00! So, if HTBK is your kind of regional bank investment, the price is where the dividend income from $1,000 invested truly exceeds the single share price by about 5.3 times. You might have a block of stocks to hold forever, no matter where the price rises or falls. The dividend has increased annually every year for the past eight years.

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