Daily Stock Pick: Southside Bancshares - Thursday, August 1
A portfolio of stocks I'm building is named Ivy and holds 52 dividend dogs. Ivy is the fourth portfolio I've built (at a one dividend dog per week pace) since 2014. Four portfolios = IV!
And today I'm reviewing the fourth financial services stock this week striving to become the seventh of seven from that sector to join my Ivy portfolio.
I'm reviewing small-cap banks- regional- US named Southside Bancshares Inc. Their trading ticker symbol is SBSI.
Southside Bancshares Inc is a financial institution offering financial services to individuals, businesses, municipal entities, and non-profit organizations.
It provides various services such as personal banking, business banking, mortgage, and equity lending, wealth management and trust, and brokerage.
The bank generates its revenue in the form of interest income, gains on sales of assets, and fee income.
The company operates through 59 branches and 40 motor bank facilities located in Texas.
Southside Bancshares, Inc. was founded in 1960 and is headquartered in Tyler, Texas.
I use three key data points to gauge dividend-paying equities or funds like Southside Bancshares Inc:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
SBSI Price
Southside's price per share closed at $34.60 yesterday. A year ago its price was $34.85. Price stayed about even in the past year varying under 1% for the year
Assuming Southside's stock trades in the range of $30.00 to $40.00 this year, Southside's recent $34.60 price could rise by $0.4035 and go to $35.00 by late-July, 2020.
SBSI Dividends
Southside's most recent quarterly dividend is $0.31 paid June 6th
That $0.31 Q payout equates to an annual dividend of $1.24 generating a yield of 3.58% based on yesterday's $34.60 closing price.
Gains For SBSI?
Adding the $1.24 annual estimated dividend to my $0.40 estimate of Southside's price upside shows a $1.64 potential gross annual gain, per share, which will be reduced by costs to trade those shares.
Say we pay a little over $1,000.00 today at the $34.60 recent stock price, we'd buy 29 Southside Bancshares Inc shares.
A $10 broker fee paid half at purchase and half at sale will cost us $0.34 per share.
Subtract that $0.34 brokerage cost from the estimated $1.64 gross annual gain leaves a net gain of $1.30 X 29 shares = $37.70 or a 3.7% net gain on a $1,055.60 investment.
Therefore, Southside Bancshares Inc whose trading ticker symbol is SBSI now shows a possible net gain of 3.7% including a 3.53% dividend yield.
Five brokers track Southside Bancshares Inc stock:
All Five say "hold" SBSI.
Their consensus score of 3.0 equates to Hold."
Now we can look at Southside Bancshares Inc and see it has made money, is making money, and could net a 3.7% gain including a 3.53% 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 Southside Bancshares Inc is worth your time and money.
Disclaimer: