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Handelsbanken (SVNLF) is one of the largest Swedish banks with significant exposure to the Swedish mortgage market; about 44% of total loans are tied to the Swedish real estate market.

Outside of Sweden, the bank operates primarily in the U.K. and Netherlands. Handelsbanken generates about three fourths of its income through its interest spread-based business, including mortgages, household loans, and corporate loans to large and small enterprises.

The bank increasingly offers asset-management, mutual fund and private banking services to its clients.

Svenska Handelsbanken ABwas incorporated in 1871 and is headquartered in Stockholm, Sweden.

Three key data points gauge Svenska Handelsbanken AB 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.

SVNLF Price

Over the past year, Handelsbanken share price increased 16.2% from $8.22 to $9.68 as of Thursday’s market close.

If Handelsbanken shares trade in the range of $8.00 to $15.00 this next year, its recent $9.68 share price might rise to $11.00 by next year. Of course, SVNLF price could also drop about the same $1.32 estimated amount, or more.

My $1.32 upside estimate however, is just under the average share price gain by a SVNLF share over the past four years.

SVNLF Dividend

Svenska Handelsbanken AB has paid annual variable dividends since May 2008.

SVNLF most recent A dividend of $0.63 was declared on February 7th for shareholders of record March 21st and the dividend was paid March 27th.

A forward looking $0.63 annual dividend yields 6.51% at Thursday’s $9.68 share price.

SVNLF Returns

To put it all together, add the Handelsbanken projected annual dividend of $0.63 to the estimated price upside of $1.32 to get a $1.95 estimated gross gain for the coming year.

At Wednesday’s $9.68 share price, a little under $1000 would buy 103 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.10 per share.

Subtracting that likely $0.10 brokerage cost from the $1.95 estimated gross gain reveals a net gain of $1.85 X 103 shares = $190.55 for about an 19% estimated net gain on the year.

Furthermore, the $65.10 annual dividend income from $1K invested is over 6.725time more than the single share price. As such, SNVLF is an ideal dividend dog.

You might choose to pounce on Svenska Handelsbanken AB. It is a 153 year-old dividend paying Stockholm-based diversified Bank that has a 16 year track record paying annual variable dividends.

The exact track of SVNLF 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.

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