Daily Stock Pick: Southside Bancshares
The portfolio of stocks I started this week, 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 third of four financial services sector stocks this week striving to become the first in the Volio folio collection. This could be the first pick for Volio!
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 small-cap bank - regional - US named Southside Bancshares Inc. Their trading ticker symbol is SBSI. I previously reported on this company on April 8, 2019, for my Ivy portfolio.
Southside Bancshares Inc is a financial institution offering financial services to individuals, businesses, municipal entities, and non-profit organizations.
The company operates through 59 branches and 40 motor bank facilities located in and around Tyler, TX; and a network of 83 automated teller machines, as well as wealth management and trust services, and/or loan production or other financial services offices.
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 or not.
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 $32.40 yesterday. A year ago its price was $35.86. In a year its price fell $3.46 or 9.6%.
Assuming Southside's stock trades in the range of $30 to $35.00 this year, Southside's recent $32.40 price could rise by $1.60 and go to $34.00 by early September 2020.
SBSI Dividends
Southside's latest declared quarterly dividend was $0.31 paid September 5th (today).
That $0.31 Q payout added to the previous 3 equates to $1.24 annually and yields 3.83% based on yesterday's $32.40 closing price. Put your money in their stock instead of their savings account and earn 3.8% in dividends.
SBSI Gains?
Adding the $1.24 annual estimated dividend to my $1.60 estimate of Southside's price upside shows a $2.84 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 $32.40 recent stock price, we'd buy 31 Southside Bancshares Inc shares.
A $10 broker fee paid half at purchase and half at sale will cost us $0.32 per share.
Subtract that $0.32 brokerage cost from the estimated $2.84 gross estimated gain leaves a net gain of $2.52 X 31 shares = ($78.12) or a 7.8% net gain on a $1,004.40 investment.
Therefore, Southside Bancshares Inc, whose trading ticker symbol is SBSI now shows a possible net gain of 7.8% including a 3.83% 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.
Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts Catch Your ...
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