Daily Stock Report: KeyCorp (KEY)

The portfolio of stocks I started building September 8, at a one stock per week pace for the next year, is named Vista.  I will select its eighteenth stock this weekend. Vista is the sixth portfolio I've built (at a one-dividend-dog per-week pace) since 2014. Six portfolios = VI, hence Vista. Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today I'll review the third of five financial services sector stock candidates vying to be that eighteenth selection in Vista.

We look at a large-cap Ohio regional bank named KeyCorp. Its trading ticker symbol is KEY.  This is my first ever report on KeyCorp for any of my dog of the week portfolios ever. The company was founded in 1849 and is headquartered in Cleveland, Ohio. KeyCorp is primarily focused on serving middle-market commercial clients through a hybrid community/corporate bank model.

With assets over $145 billion, Ohio-based KeyCorp's bank footprint spans 16 states, but it is predominantly concentrated in its two largest markets: Ohio and New York.

As of December 31, 2019, it operated through 1,098 retail banking branches and 1,420 ATMs in 15 states, as well as additional offices, online and mobile banking capabilities, and a telephone banking call center. 

I use three key data points to gauge dividend equities or funds like KeyCorp:

(1) Price

(2) Dividends

(3) Returns

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

KEY Price

Key's price per share closed at $16.55 yesterday. A year ago its price was $19.61. Price is down $3.06 or about 15.6% on the year.

If KeyCorp stock trades in the range of $8 to $20 this next year, its recent $16.55 price might rise by $1.45 to reach $18.00 by January 6, 2022. 

KEY Dividends

Key's most recently declared Quarterly dividend was $0.185 paid December 15th. Dividends are estimated to total $0.74 per share annually and yield 4.47% at yesterday's $16.55 closing price.

KEY Gains?

Adding the $0.74 annual anticipated dividend to my $1.45 optimistic price upside shows a $2.19 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in KeyCorp at $16.55 per share and we'd buy 60 shares of KEY stock. A $10 broker fee (if any) paid half at purchase and half at sale could cost us  about $0.17 per share.

Subtract that maybe $0.17 brokerage cost from my estimated  $2.19 gross gain per share results in a net gain of $2.02 X 60 shares = $121.46 for a 12.15% net gain on a $993.00 investment.

So it goes that KeyCorp (KEY) shows a possible 12.15% net gain including a 4.47% dividend yield. It could be more, it could be less.  

All of the estimates above are speculation based on the past history of KeyCorp (KEY).  Only time and money invested in this stock will determine its worth.

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 ...

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