TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

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Union Bankshares Inc. with the ticker UNB is a nano-cap VT regional bank operating in the financial services business sector. This is the fifth of five financial candidates competing for the forty-eighth slot in my Viital folio. It is my first report on UNB for my Viital portfolio or any of my previous six portfolios.

Union Bankshares Inc. operates as a community bank in the financial services industry. It offers retail and commercial banking services to its customers through its branches, ATMs, telebanking, and internet banking systems.

The company provides retail banking services to individuals and commercial banking services to small and medium-sized corporations, partnerships, and sole proprietorships, as well as nonprofit organizations, local municipalities, and school districts within its Vermont-based market area.

In addition, it also offers fiduciary and asset management services through its Asset Management Group. Geographically, all the business activity is in the US.

It operates 18 banking offices, 3 loan centers, and various ATMs. Union Bankshares, Inc. was founded in 1891 and is headquartered in Morrisville, Vermont.

Three key data points gauge any dividend equity or fund such as Union Bankshares, Inc:

(1) Price

(2) Dividends

(3) Returns

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

UNB Price

Union’s price per share was $25.25 as of yesterday’s market close.  One year ago its price was $33.15. So, UNB’s share price fell by $7.90 or about 24% in the past year.

If Union’s stock trades in the range of $20.00 to $30.00 this next year, its recent $25.25 share price might rise by $1.75 to reach $27.00 by next year. My $1.75 upside estimate is about half of Union’s past two-year increase per share.
 

UNB Dividends

Union Bankshares’ most recently declared quarterly dividend of $0.35 was paid on August 4th to shareholders on record as of July 28th.

Since July 10, 1997, UNB has paid quarterly variable dividends.  Since November 2012, however, the quarterly dividend has increased in annual increments from $0.25 to int current $.35 amount. The current forward-looking annual dividend of $1.40 casts an annual yield of 5.54% as of yesterday’s $25.25 share price.
 

UNB Returns

Adding the $1.40 UNB annual dividend to my estimated one-year price upside estimate of $1.75 shows a $3.15 potential gross gain, per share, to be reduced by any costs to trade UNB shares.

At yesterday's $25.25 closing price, a little over $1000 would buy 40 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us $0.25 per share.

Subtracting that maybe $0.25 brokerage cost from my estimated $3.15 gross gain estimate per share results in a net gain of $2.90 X40 shares = $116.00 for an 11.6% net gain including a 5.54% forward-looking annual dividend yield.

Over the next year our $1K investment in Union Bankshares, Inc. shares could generate $55.40 in cash dividends. Of course, a single share of UNB stock bought at yesterday's $25.25 price is over 2 times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a positive time to acquire UNB shares based on their forward-looking dividends for the year 2022. The forecast annual dividend from $1K invested is 2.19 times greater than yesterday’s single share price. Consider yourself alerted. Now is the time.

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

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