Every New York stock exchange trading day I’m posting a daily dividend stock or fund review. I’ll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I’ve named the Safari to Sweet Success.
This week my Safari portfolio has an opening for a company in the financial services sector.
That sector includes nineteen industries all related to managing money. Industries include: asset management; banks either global or from any of seven regions, capital markets, credit services, financial exchanges, insurance in six specializations, savings banks, and specialty finance.
Today I’m reviewing a non-diversified closed-end management investment company named StoneCastle Financial Corp., its trading ticker symbol is BANX.
StoneCastle Financial’s investment management objective is to provide stockholders with current income, and to a lesser extent capital appreciation through investment in U.S. community banks.
StoneCastle Financial Corp is advised by StoneCastle Asset Management, LLC and is headquartered in New York City.
I use three primary keys to measure dividend equities or funds like StoneCastle Financial (BANX):Â
(1) Price
(2) Dividends
(3) Returns
BANX Price
StoneCastle’s price at Friday’s market close was $21.12 per share. The company has made money for investors. A year ago its price was $19.55. Meaning it gained$1.57 per share in the past year.If BANX does the same in the coming year its price will increase from that $21.12 to $22.69 per share or about 7.4%.
BANX Dividends
StoneCastle’s most recent quarterly dividend was $0.38 declared in December and paid out January 3rd. Â
The annual dividend for 2018 is estimated at $1.52 payable in March, June, September, and January at $0.38 per quarter.
The yield from that $1.52 annual dividend will be 7.2% at Friday’s $21.12 price.
Gains For BANX?
Adding the $1.52 dividend to the $1.57 estimated year over year price gain shows a potential $3.09 gross gain for the coming year. Â
