Stock Analysis: ABN AMRO Bank

Ipad, Online, Tablet, Internet, Screen, Digital

Image Source: Pixabay


ABN Amro Bank (AAVMY) is a Dutch bank, and the Netherlands accounts for around 90% of its operating profit.

Operationally, retail and commercial banking contributes the majority of its operating profit, while ABN Amro continues to reduce its exposure to corporate and investment banking.

It views private banking as one of its key growth areas

The company was incorporated in 2009 and is headquartered in Amsterdam, the Netherlands.

ABN AMRO Bank N.V. operates as a subsidiary of Stichting Administratiekantoor Continuïteit ABN Amro Bank.

Three key data points gauge ABN AMRO or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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


AAVMY Price

Over the past year, ABN AMRO share price increased over 16.2% from $14.85 to $17.26 as of Friday’s market close.

If ABN AMRO shares trade in the range of 12.50 to $20.50 this next year, its recent $17.26 share price might rise to $19.00 by next year. Of course, ABN AMRO price could drop about the same $1.74 estimated amount, or more.

My annual upside estimate of $1.74 however, is nearly in-line with the average share price gain by ABN AMRO over the past year.


AAVMY Dividend

ABN AMRO has paid semi-annual variable dividends since November 2021.

ABN AMRO most recent SA dividend of $0.97 was declared on February 16th for shareholders of record on April 26th and the dividend pay date is June 11.

A forward-looking $1.63 annual dividend yields 9.44% at Friday’s $17.26 share price.


AAVMY Returns

To put it all together, add the ABN AMRO projected annual dividend of $1.63 to the estimated price upside of $1.74 to get a $3.37 estimated gross gain for the coming year.

At Friday’s $17.26 share price, a little over $1000 would buy 58 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.1725 per share.

Subtracting that unlikely $0.1725 brokerage cost from the $3.37 estimated gross gain reveals a net gain of $3.1975 X 58 shares = $185.46 for about an 18.5% estimated net gain on the year.

Furthermore, the $99.44 annual income from $1K invested is over 5.75 times more than the single share price. It is an ideal dividend dog.

You might choose to pounce on ABN AMRO. It is a 15-year-old dividend paying Amsterdam -based diversified Bank that has a 3-year track record paying semi-annual variable dividends.

The exact track of ABN AMRO future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


More By This Author:

Current Analysis: Skyworks Solutions
Current Analysis: Infosys Ltd
Current Analysis: Telefonaktiebolaget L M Ericsson

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 ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with