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United Bankshares Inc. (UBSI) is a financial holding company that provides banking services.

The company operates in two segments: (1) Community banking, which accepts deposits, makes loans (for a personal, credit card, commercial, and construction uses), provides brokerage services, safe deposit boxes, and related services; and (2) Mortgage banking, which offers and acquires home mortgages through an indirectly owned subsidiary.

Nearly all revenue comes from the community banking segment.

United Bankshares, Inc. was incorporated in 1982 and is headquartered in Charleston, West Virginia.

Three key data points gauge United Bankshares Inc., or any dividend-paying firm.

They are:

(1) Price

(2) Dividends

(3) Returns

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

UBSI Price

Over the past year, United share price fell about 16.6% from $35.60 to $29.68 as of Monday’s market close.

If United Bankshares Inc, stock trades in the range of $25.00 to $45.00 this next year, its recent $29.68 share price might get up to $33.00 by next year. Of course, UBSI’s price could drop about the same $3.32 amount, or more.

My upside estimate of $3.32 is $1.33 below the median of annual target price estimates from six analysts covering the stock for brokers.
 

UBSI Dividend

United Bankshares Inc’s recent $0.36 quarterly dividend payable July 3rd to shareholders of record June 8th equates to $1.44 annually and throws a yield of 4.85% as of Monday’s closing price.
 

USBI Returns

Adding the $1.44 anticipated annual dividend to the United Bankshares Inc estimated $3.32 price upside, reveals a $4.76 potential gross gain per share for the coming year.

At Monday’s $29.68 closing price, a little over $1000 would buy 34 shares.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might cost us about $0.29 per share.

Subtracting that maybe $0.29 brokerage cost from my estimated $4.76 gross gain per share makes a net gain amounting to $4.47 X 34 shares = $151.98 for a 15.15% net gain.

This may be the time to pounce on UBSI. But beware, its dividend is stable and its price is low, and over $20 under the stock’s all-time $49.35 high posted Decem

The foregoing article is based on past history of United Bankshares Inc. The only accurate measure of future performance is from active investment in the company.

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