The portfolio of stocks I'm starting today, named Volio Folio, holds 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the first of four financial services sector stocks this week striving to become the first in the Volio folio collection. This is the first pick for Volio!

It is time now to look at that financial sector which includes twenty industries ranging from Asset Management to 8 kinds of Banks, Credit, Exchanges, 6 kinds of Insurance, Savings, and all such financial concerns.

Today my subject is a mid-cap banks - regional - US named People's United Financial Inc. Their trading ticker symbol is PBCT. I previously reported on this company on June 18, 2018, and on June 25, 2019, for the Ivy portfolio.

People's United Financial Inc has nearly $39 billion of assets. People's United Bank is one of the New England-based banks and among the top 50 in the U.S. Of the bank's 405 locations, 40% are in Connecticut, where it ranks third by deposit market share. It also ranks among the top 10 in Vermont, New Hampshire, and Maine.

The bank offers brokerage, financial advisory and wealth management, and insurance services. Commercial real estate accounts for 35% of the loan book, C&I and equipment financing accounts for another 35%, and the rest is in mortgages and consumer.

The company was founded in 1842 and is headquartered in Bridgeport, Connecticut.

I use three key data points to gauge dividend-paying equities or funds like People's United Financial Inc:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest or not.

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

PBCT Price

People's price per share closed at $14.37 Friday. A year ago its price was $18.54. In a year its price fell $4.17 or 22.5%.

Assuming People's stock trades in the range of $13.50 to $18.00 this year, People's recent $14.37 price could rise by $1.63 and go to $16.00 by early September 2020.

PBCT Dividends

People's latest declared quarterly dividend was $0.1775 paid August 15th.

That $0.1775 Q payout added to the previous 3  equates to $0.71 annually and yields  4.94% based on yesterday's $14.37 closing price. Put your money in their stock instead of their savings account and earn nearly 5% in dividends.

PBCT Gains?

Adding the $0.71 annual estimated dividend to my $1.63 estimate of People's price upside shows a $2.34 potential gross gain, per share, which will be reduced by costs to trade these shares.

Say we put a little over $1,000.00 today at the $14.37 recent stock price, we'd buy 70 People's United Financial Inc shares.

A $10 broker fee paid half at purchase and half at sale will cost us $0.14 per share.

Subtract that $0.14 brokerage cost from the estimated $2.34 gross estimated gain leaves a net gain of $2.20 X 70 shares = ($160.30) or a 16% net gain on a $1,005.90 investment.

Therefore, People's United Financial Inc,  whose trading ticker symbol is PBCT now shows a possible net gain of 16% including a 4.94% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to learn if People's United Financial Inc (PBCT) is worth your time and money.