Photo by Austin Distel on Unsplash
 

KeyCorp, ticker KEY, is a large-cap Ohio Regional Bank in the financial services business sector. It is, as I said, the fifth of five financial services candidates vying to be the third selection for my Viking folio. This is not my first report on KEY. I have discussed it previously and selected it as the 18th member of my Vista (the V) Dog of the Week portfolio.

With assets of over $170 billion, Ohio-based KeyCorp's bank footprint spans 16 states, but it is predominantly concentrated in its two largest markets: Ohio and New York. KeyCorp is primarily focused on serving middle-market commercial clients through a hybrid community/corporate bank model.

As of December 31, 2021, it operated through a network of approximately 999 branches and 1,317 ATMs in 15 states, as well as additional offices, online and mobile banking capabilities, and a telephone banking call center.

KeyCorp was founded in 1849 and is headquartered in Cleveland, Ohio.

Three key data points gauge

KeyCorp:

(1) Price

(2) Dividends

(3) Returns

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

KEY Price

KeyCorp’s price per share was $15.85 at today’s market opening. In the past year, KEY’s share price fell by $7.93 or about 33.34%.

If KeyCorp’s stock trades in the range of $10.00 to $30.00 this next year, its recent $15.85 share price might reach $20.00 by next year. My upside increase estimate of $4.15 is $1.55 lower than the average price upside forecast by 21 analysts tracking KEY for brokerages.
 

KEY Dividends

KeyCorp’s most recently declared quarterly dividend of $0.195 per share equals $0.78 annually and casts a yield of 4.92%.
 

KEY Returns

Adding the $0.78 annual

KeyCorp's dividend to my one-year price upside estimate of $4.15 shows a $4.93 potential gross gain per share.

At Today’s $15.85 closing price, a little under $1000 would buy 63 shares.

A $10 broker fee (if charged), paid half at purchase and a half at the sale, might cost us $0.16 per share.

Subtracting that maybe $0.16 brokerage cost from my estimated $4.93 gross gain per share results in a net gain of $4.77 X 63 shares = $300.51 for a 30% net gain including a 4.92% annual yield.

In a year our $1K investment in shares of KeyCorp could generate $49.20 in cash dividends. Of course, a single share of KEY stock at today's $15.85 share price is more than 3 times less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is really a good time to buy KEY shares based on their dividends for the year 2022. The dividend from $1K invested is 3.10 times greater than KEY’s single share price. Consider yourself alerted. Now IS the time for KeyCorp.

All of the estimates above are speculation based on the past history of KeyCorp. Only time and money invested in this stock will determine its market value.

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