Thursday, January 19, 2023 10:00 AM EST
Fifth Third Bancorp bears the ticker symbol (FITB), and this is my first mention of Fifth Third Bancorp for my new Viking Portfolio or any of my previous Dog of The Week Portfolios.
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Fifth Third Bancorp is a diversified financial-services company headquartered in Cincinnati.
The company has over $200 billion in assets and operates numerous full-service banking centers and ATMs throughout Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, and North Carolina..
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Fifth Third is a bank that's as long on innovation as it is on history. Since 1858, it’s been helping individuals, families, businesses and communities grow through smart financial services that improve lives.
Named among Ethisphere's World's Most Ethical Companies® for several years.
With a commitment to taking care of customers, employees, communities and shareholders, the FITB goal is not only to be the nation's highest performing regional bank, but to be the bank people most value and trust.
Three key data points gauge
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Fifth Third Bancorp:
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(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
FITB Price
Fifth Third’s price per share was $32.72 at Wednesday’s market close. In the past year, FITB’s share price declined by $17.73 or about 65%.
If Fifth Third’s stock trades in the range of $30.00 to $50.00 this next year, its recent $32.71 share price might reach to $38.00 by next year. That upside estimate of $5.28 is $1.87 below the median of one year target estimates from the twenty-two analysts covering FITB for brokers.
FITB Dividends
Fifth Third’s most recent quarterly dividend of $0.33 equates to $1.32 annually and casts a forward yield of 4.03%.
FITB Returns
Adding the $1.32 annual estimated PACW dividend to my one-year price upside estimate of $5.28 reveals a $6.60 potential gross gain estimate per share.
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At Wednesday’s $32.72 closing price, a little over $1000 would buy 31 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.32 per share.
Subtract that maybe $0.32 brokerage cost from my estimated $6.60 gross gain makes a net gain of $6.28 X 31shares = $194.68 for a 19.45% net gain including a 4.03% annual dividend yield.
In the next year our $1K investment in shares of Fifth Third Bancorp would generate $40.30 in cash dividends. Of course, a single share of FITB stock at Wednesday's $32.72 price is $7.58 less than the estimated annual dividend income from our $1000.00 investment.
So, by my dogcatcher ideal, this looks like a good time to buy FITB shares based on their dividends for 2023. The current dividend from $1K invested is $7.58 more than the FITB single share price. Consider yourself alerted.
All of the estimates above are speculation based on the past history of investment in shares of Fifth Third Bancorp. Only time and money invested in this stock will determine its future market value.
More By This Author:
Daily Stock Analysis: PacWest Bancorp
Daily Stock Analysis: AllianceBernstein Holding
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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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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 solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.
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 Underdog Daily Dividend on Facebook!
The night before every NYSE trading day on Facebook/ Dividend Dog Catcher Fredrik Arnold usually does a quick live video summary of one stock contending for a weekly slot on his new Viking portfolio.
Last night Arnold followed this script on his Underdog Daily Dividend Show!
Always remember: Root for the Underdog.
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