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TFS Financial Corp goes by the ticker symbol TFSL and is a member of the financial services business sector as an Ohio regional bank. This is my second report on Capital Southwest Corp for this Vista folio and I last discussed it on February 23rd.

TFS Financial Corp is the holding company for the Third Federal Savings and Loan Association of Cleveland. The company's ownership in the savings and loan association is its primary business activity. 

The association's principal business consists of originating and servicing residential real estate mortgage loans and attracting retail savings deposits. It does so by offering products with competitive rates and yields. 

The company also operates Third Capital, a wholly-owned subsidiary that serves as a holding company or as an investor in vehicles such as private equity funds. Third Capital has interests in lease transactions of commercial buildings, title agencies providing escrow and settlement services, and reinsurance of private mortgage insurance on residential loans.

The company provides its products and services through its main office in Cleveland, Ohio; and 37 full-service branches and 7 loan production offices located throughout the states of Ohio and Florida. 

The company was founded in 1938 and is headquartered in Cleveland, Ohio. TFS Financial Corporation is a subsidiary of Third Federal Savings and Loan Association of Cleveland, MHC.

Three key data points gauge dividend equities or funds like TFS 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. 

TFSL Price

TFS Financial price per share was $20.41 as of yesterday's market close. One year ago its price was $14.75. Thus, price per share grew over 38% in the past year as the market recovered from Covid doldrums. 

Should TFSL's stock trade in the range of $13 to $23.00 this next year, its recent $20.41 price might rise by $1.09 to reach $21.50 by June 22, 2022. My estimate corresponds to the average annual TFSL price gains over the past ten years.

TFSL Dividends

TFS Financial Corp's most recently declared quarterly dividend payout of $0.28 is payable June 22nd and equates to $1.12 annually which will yield 5.49% based on yesterday's $20.41 closing price. TFSL has paid quarterly dividends increasing annually for 7 years.

TFSL Returns

Adding the $1.12 annual TFS Financial Corp forward-looking dividend to my $1.09 price upside estimate shows a $2.21 potential gross gain, per share, to be reduced by any costs to trade TFSL.  

At Friday's $20.41 price per share, a little over $1000 would buy 49 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.20 per share.

Subtract that maybe $0.20 brokerage cost from my estimated $2.21 gross gain per share results in a net gain of $2.01 X 49 shares = $98.49 for a 9.8% net gain on a $1,000.09 investment.

So it is that  TFS Financial Corp shows a possible 9.8% net gain including a 5.49% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in TFSL would generate $54.90 in cash dividends. And a single share bought at Friday's closing price was $20.41! So, TFSL's share price is just over one-third of the dividend income from $1K invested. Thus, according to dogcatcher preference, this is an opportune time to invest in TFS Financial Corp shares.

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