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Opinions John Stephenson
Banco Santander SASANCOMMENTOct 13, 2015
John StephensonStock 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
This is fine from a dividend standpoint. Financials in general, globally, have been weak of late. When you think about the cycle for banks and financial institutions, this is really the worse possible time. We have very low interest rates throughout the developed world and there is not a clear visibility in terms of when rates are going to rise. If you are looking out a year, you are generally going to see an increase in rates in the federal reserve, at least in the next year. This would be a good, longer-term hold.