TFS Financial Corp, with the ticker TFSL, is a mid-cap Ohio regional banking company operating in the financial services business sector. This is the third of five financial candidates competing for the forty-eighth slot in my Viital folio. It is my second  report on TFSL for my Viital portfolio. I last discussed it on December 24, 2021. 

TFS Financial Corp is the holding company for the Third Federal Savings and Loan Association of Cleveland.

Image: TFS Financial

The company's ownership in the savings and loan association is its primary business activity. 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.

The company provides its products and services through its main office in Cleveland, Ohio; and 37 full-service branches and 7 loan production offices located throughout the states of Ohio and Florida. 

The company was founded in 1938.

Three key data points gauge any dividend equity or fund such as TFS Financial Corp:

(1) Price

(2) Dividends

(3) Returns

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

TFSL Price

TFSL’s price per share was $14.54 as of yesterday’s market close.  One year ago it’s price was $19.99. So, TFSL’s share price fell by $5.45 or about 27% in the past year. 

If TFSL’s stock trades in the range of $12.00 to $21.00 this next year, its recent $14.54 share price might rise by $4.46 to reach $19.00 by next year. My $4.46 upside estimate lines up with the median of one-year targets from 2 analysts covering TFSL for brokers. 
 

TFSL Dividends

TFSL’s most recently declared quarterly dividend of $0.2825 is payable September 20th to shareholders on record as of September 2nd.  

Since September 26, 2014 TFSL has paid quarterly variable dividends.  The current forward looking annual dividend of $1.13. projects an annual yield 7.77% as of yesterday’s $14.54 share price.
 

TFSL Returns

Adding the $1.13 TFSL annual dividend to my estimated one-year price upside estimate of $4.46 shows a $5.59 potential gross gain, per share, to be reduced by any costs to trade TFSL shares.  

At yesterday's $14.54 closing price, a little over $1000 would buy 69 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.145 per share.

Subtract that maybe $0.145 brokerage cost from my estimated $5.59 gross gain estimate per share results in a net gain of $5.445 X 69 shares = $375.71, for a 37.55% net gain including a 7.77% forward looking annual dividend yield. 

Over the next year our $1K investment in TFS Financial Corp shares could generate $77.70 in cash dividends. Of course, a single share of TFSL stock bought at yesterday's $14.54 price is over five times less than the dividend income from our $1000.00 investment. 

So, by my dogcatcher ideal, this is a positive time to acquire TFSL shares based on their forward looking dividends for the year 2022. The forecast annual dividend from $1K invested is 5.3 times greater than yesterday’s single share price. Consider yourself alerted. Now is the time.

All of the estimates above are speculation based on the past history of TFS Financial Corp. Only time and money invested in this stock will determine its market value.

More By This Author:

Daily Stock Analysis: Arbor Realty Trust
Today's Stock Report: Capital Southwest (CSWC)
Daily Stock Analysis: The Interpublic Group