This week, I'm looking for the fifth financial services representative of seven for my Ivy portfolio.

The financials sector includes 19 industries all related to managing money: asset management; banks either global or from any of seven regions, capital markets, credit services, financial exchanges, insurance in six specializations, savings banks, and specialty finance.

Today I'm reviewing a mid-cap bank - regional company named TFS Financial Corporation. Its trading ticker symbol is TFSL.

TFS Financial is the holding company for the Third Federal Savings and Loan Association of Cleveland. The company’s ownership in the savings and loan association is its primary business activity. 

The company was founded in 1938 and is headquartered in Cleveland, Ohio. TFS Financial Corporation is a subsidiary of Third Federal Savings and Loan Association of Cleveland, MHC. It provides its products and services through its main office in Cleveland, Ohio; and 38 full-service branches and 8 loan production offices located throughout the states of Ohio and Florida.

The association’s principal business consists of originating and servicing residential real estate mortgage loans and attracting retail savings deposits. It does so by offering products with competitive rates and yields.

The company also operates Third Capital, a wholly owned subsidiary that serves as a holding company or as an investor in vehicles such as private equity funds. Third Capital has interests in lease transactions of commercial buildings, title agencies providing escrow and settlement services, and reinsurance of private mortgage insurance on residential loans.

I use three key data points to gauge the value of any dividend equity like TFSL:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest. Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

TFSL Price

TFSL's price per share closed at $17.08 yesterday. A year ago its price was $15.35. Price rose $1.73 or over 11.25% in the past year.

Assuming TFSL's stock trades in the range of $15.00 to $20.00 this year, TFSL's recent $17.08 price could rise by $0.92 and go to $18.00 by late-May, 2020.

TFSL Dividends

TFSL's most recent declared quarterly dividend was $0.25 declared February 21st and paid, March 19th.

That $0.25 Quarterly dividend equates to an annual payout of $1.00 for a yield of 5.85% at yesterday's $17.08 closing price.

Gains For TFSL?

Adding a $1.00 annual estimated dividend to my $0.92 estimate of

TFSL's price upside shows a $1.92 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 $17.08 recent stock price would buy us 59 TFS Financial Corp (TFSL) shares.

A $10 broker fee paid half at purchase and half at sale will cost us $0.17 per share.

Subtract that $0.17 brokerage cost from the estimated $1.92 gross annual gain leaves a net gain of $1.75 X 59 shares = $103.25 or a 10.25% net gain on a $1,007.72 investment.

Therefore, TFS Financial Corp whose trading ticker symbol is TFSL, now shows a possible net gain of 10.25% including a 5.85% dividend yield.

Three brokers cover TFS Financial Corp (TFSL) stock:

One says "buy" TFSL.

Three say "hold" TFSL.

The consensus score is 2.33 or "outperform".

Therefore, you can look at TFSL and see it has made money, is making money, and could net a 10.25% gain including a 5.85% 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 determine if TFS Financial Corp (TFSL) is worth your time and money.