Today I purchased 51 shares PacWest Bancorp (PACW) at a price of $35,22. PacWest Bancrop is a regional bank holding company mainly active in California. PacWest has over $26 billion in assets and is the holding company for Pacific Western Bank.
PacWest Bancorp is currently paying a dividend of $2,40 per year which results in a dividend yield of 6,8%.
As part of my targets for 2020 I also formulated 6 guidelines which I use regarding new investments. New investments must follow at least 4 out of these 6 targets:
|Yield > 2,5%||Y||6,81%|
|5YR average dividend growth > 10%||N||4,66%|
|Payout < 65%||Y||61,50%|
|PE ratio < 20||Y||9,0|
|ROE > 10%||N||9,60%|
|Current price vs. 52 week high < 85%||J||84,60%|
The dividend growth I basically one of the most import lines on the list with guidelines above, but as the current yield is high this stock still scores high on my watchlist.
The estimated dividend income from PacWest Bancorp the next 10 years is beating the expected income from other stocks on my watchlist with a higher average dividend growth rate. Only PNC Financial is getting close in this time frame, but as I use an average 5 year growth rate of 20% for PNC so it’s questionable if this growth rate can be maintained over a time frame of 10 years.
With the purchase of PacWest Bancorp I add $122,40 to my yearly estimated dividend income.