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Opinions Gavin Graham
Banco Santander SASANCOMMENTMar 13, 2015
Gavin GrahamStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Chris StuchberryChris Stuchberry
Rick StuchberryInterest rates will go up after the ECB changes chairs in June 2019. Each quarter they put up $2 billion+ of net income and are trading a hair above book value now, plus negative sentiment to Euro banks now. (3.3% dividend yield, Analysts' price target: $106.76)
Chris StuchberryHe doesn’t own this, but he owns comparable banks. The whole global banking sector is trading at very cheap multiples. They are all under pressure from the flattening yield curve, and they all pay hefty dividends. The bank’s poor performance is sector-driven more than driven by the political issues in the countries where it does business.
He owns this as a European bank holding in the portfolio. The flat yield curve is holding them back. He will continue to hold it for when the yield curve normalizes.
Rick Stuchberry
Bank of America (BAC-N) or Banco Santander (SAN-N)? This has a much lower dividend yield. They cut the dividend by two thirds and did a big equity issue, which is the reason for the big slide in the price. A very well-run bank, but there was a big chunk of stock that was placed with investors, so the share price is probably going to mark time for a while. Bank of America is probably the one you should stay with.