Daily Stock Pick: Prudential Financial

A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 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 fourth of five financial services sector stocks poised to join my Volio folio this week. This could be my fortieth pick for Volio!

That financial sector includes twenty industries ranging from Asset Management to 8 kinds of Banks, Credit, Exchanges, 6 kinds of Insurance, Savings, and all such financial concerns.

My subject today is another large-cap life insurance company named, Prudential Financial Inc. Its trading ticker symbol is PRU. This is my first report on Prudential Financial Inc for this Volio portfolio.

Prudential Financial is a large, diversified insurance company offering annuities, life insurance, retirement plan services, and asset management products.

While it operates in a number of countries, the vast majority of revenue is generated in the United States and Japan.

Prudential is the second-largest life insurance company in the U.S.

It offers its products and services to individual and institutional customers through its proprietary and third-party distribution networks.

The company was founded in 1875 and is headquartered in Newark, New Jersey.

I use three key data points to gauge dividend equities or funds like Prudential Financial Inc:

(1) Price

(2) Dividends

(3) Returns

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

PRU Price

Prudential's price per share closed at $63.55 yesterday. A year ago their price was $98.90. Price fell $35.35 or a little under 35.75% last year.

Assuming Prudential's stock trades in the range of $40 to $80 this next year, its recent $63.35 price might rise by $2.45 to reach $66.00 by June 4, 2021.

PRU Dividends

Prudential's most recent declared quarterly dividend was $1.10 payable June 18th. That $1.10 Q dividend equates to $4.40 annually and yields 6.92% at yesterday's $63.55 share price.

PRU Gains?

Adding the $4.40 annual estimated dividend to my $2.45 optimistic estimate of Prudential's price upside shows a $6.85 potential gross gain, per share, to be reduced by any costs to trade the shares.

Put little over $1,000.00  today in Prudential Financial Inc shares at their $63.55 price, buys 16 shares of PRU stock.

A $10 broker fee paid half at purchase and half at sale could cost about $0.63 per share.

Subtract that $0.63 brokerage cost from my estimated $6.85 gross gain per share results in a net gain of $6.22 X 16 shares = $99.52 for a 9.9% net gain on a $1,016.80 investment.

Prudential Financial Inc shows a possible 9.9% net gain including a 6.92% dividend yield. It could be more, it could be less.

The above speculation is based on past performance and supposition. Only time and money invested will tell if Prudential Financial Inc s worth it.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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John Doee 3 years ago Member's comment

Hi Fredrik, thank you so much for this article. I would love to know how you value these large companies and how you decide what to put in your portfolio?

John Mechelke 3 years ago Member's comment

It will be worth it

Ayelet Wolf 3 years ago Member's comment

Agreed.