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Umpqua Holdings Corp, known by the ticker symbol UMPQ, is a mid-cap regional bank, operating in the financial services business sector in Oregon. This is my first report on Umpqua Holdings Corp for this Viital portfolio or any of my previous six dog of the week portfolios.

Umpqua Holdings Corp is the parent company of Umpqua Bank, an Oregon-based community bank with operations mostly in the Pacific Northwest region of the United States as well as Nevada.

The bank provides a broad range of banking, wealth management, mortgage, and other financial services to corporate, institutional, and individual customers. Its community banking model places a high premium on innovation, specifically on its product delivery system and its service user experience.

The company also owns Umpqua Investments, a registered broker-dealer and investment advisor offering a full range of investment products and services. Its operating segments are Core Banking and Mortgage Banking. The bank's main source of revenue is net interest income.

As of December 31, 2021, it conducted commercial and retail banking activities at 234 locations, including 202 store locations in Oregon, Washington, California, Idaho, and Nevada; and operated 28 facilities for the purpose of administrative and other functions, such as back-office support, of which two are owned and 26 are leased.

The company was founded in 1953 and is headquartered in Portland, Oregon.

Three key data points gauge any dividend equity or fund such as Umpqua Holdings Corp (UMPQ)

(1) Price

(2) Dividends

(3) Returns

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

UMPQ Price

Umpqua’s price per share was $17.29 as of yesterday's market close. One year ago its price was $18.95. Therefore, Umpqua’s share price fell $1.66 or about 8.75% in the past year.

If Umpqua’s stock trades in the range of $16.00 to $22.00 this next year, its recent $17.29 share price might rise by $3.21 to reach $20.50 by April 29, 2023. My $3.21 upside estimate is $1.04 less than the median of price upside gauged by six analysts tracking UMPQ for their brokerages.
 

UMPQ Dividends

Umpqua’s most recently declared a quarterly dividend of $0.21 was paid on February 25th to shareholders on record as of February 14th.

Umpqua Holdings Corp paid its first quarterly dividend on October 20, 1996. The dividend increased steadily from $0.02 to $0.19 between 1996 and 2008 when it was reduced to $0.05 and increased again in 2011 growing to $0.21 by 2018. At that rate, UMPQ’s annual payout of $0.84 is estimated to deliver a 4.86% annual yield per yesterday’s $17.29 share price.
 

UMPQ Returns

Adding the $0.84 UMPQ annual dividends to the estimated one-year price upside of $3.21 shows a $4.05 potential gross gain, per share, to be reduced by any costs to trade UMPQ shares.

At yesterday's $17.29 closing price per share, a little over $1000 would buy 58 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.17 per share.

Subtract that maybe $0.17 brokerage cost from my estimated $4.05 gross gain estimate per share results in a net gain of $3.88 X 58 shares = $225.04 for a 22.5% net gain on a $1,002.82 investment.

So is that Umpqua Holdings Corp (UMPQ) shows a possible 22.5% net gain including a 4.86% forward-looking dividend yield.

Over the next year at this time, our $1000 investment in UMPQ shares could generate $46.60 in cash dividends alone. Note that a single share of UMPQ stock bought at yesterday's $17.29 price is over 2.5 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 UMPQ shares based on their declared dividend for the year 2022. The forthcoming annual dividend from $1K invested is currently 2.695 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 Umpqua Holdings Corp (UMPQ). Only time and money invested in this stock will determine its market value.