Image Source: First Horizon Corp () is the parent company of First Tennessee Bank, a prominent regional bank with about 200 branches around Tennessee.The regional bank is responsible for roughly 65% of its revenue, while capital markets make a 25% contribution. The remainder is split between the firm’s non-strategic (wind-down) and corporate operations.First Horizon concentrates on offering a variety of banking products mainly in its home state, where it has the second-largest deposit franchise with a 13% deposit market share.First Horizon Corporation was founded in 1864 and is headquartered in Memphis, Tennessee.Three key data points gauge FHC or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three keys also best tell whether any company has made, is making, and will make money.FHC PriceOver the past year, First Horizon’s share price rose 53.5% from $10.36 to $15.90 as of Wednesday’s market close.In the past 10 years, the company’s share price has never been less than $6.81 nor higher than $25.88. (Although back in March 2004 share price hit an all-time high of $40.47.)If shares trade in the range of $10.00 to $20.00 this next year, the recent $15.90 share price might grow to $18.00. Of course, the FHN price could also drop about the same $2.10 estimated amount or more.My $2.10 upside estimate is slightly more than the median of one-year target prices estimated by 15 analysts covering the stock for brokers.FHN DividendFirst Horizon has paid variable quarterly dividends since April 2011. The most recent $0.15 Q dividend was declared July 23rd for shareholders of record September 13th, and the dividend was paid out October 1st. A forward-looking $0.60 annual dividend yields 3.77% at Wednesday’s $15.90 closing price.FHN ReturnsPutting it all together, a $2.70 estimated one-year gross gain per share shows up by adding First Horizon’s $0.60 estimated annual dividend to the estimated price upside of $2.10, making that $2.70 gross gain amount.A little over $1000 buys us 63 shares at their $15.90 price.A $10 broker fee (if charged), paid half at purchase and half at sale, could take about $0.16 per share out of the $2.70 gross-gain to give us a net gain of $2.54 X 63 shares = $160.02 for about a 16% estimated net gain for the year.Furthermore, the $37.70 estimated annual dividend income from $1K invested is over 2.3 times more than the $15.90 share price. By these numbers, FHN might be an ideal dividend dog at this time.Thus, you might choose to pounce on FHN It is a 160-year-old quarterly dividend-paying Tennesee-based regional bank with a 13-year record paying quarterly dividends.The exact track of FHN’s 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 Report: First Horizon Corp
