TFSL Is Now Yielding 6.8%

At Friday’s closing price, TFSL now has a dividend yield of 7.5%, and it just declared another quarterly dividend of $0.2825 payable on 06/21/22, with an ex-div date of 06/06/2022.

I’m pondering a purchase tomorrow.

David (formerly TMFWysocki)

I’ll be interested to see what they do with the dividend this time around. We should have a filing soon enough.

Jim

2 Likes

I’ll be interested to see what they do with the dividend this time around.

What are you thinking, Jim?

David

I think we just get the same dividend at best.

Jim

Got it, Jim. Thanks for your reply.

David

I think we just get the same dividend at best.

You nailed it, Jim.

CLEVELAND - June 1, 2022 - TFS Financial Corporation (Nasdaq: TFSL), (the “Company”), the holding company for Third Federal Savings and Loan Association of Cleveland, announced that Third Federal Savings and Loan Association of Cleveland, MHC, (the “MHC”), the mutual holding company that owns 80.9% of the Company’s outstanding common stock, will hold a special meeting of its members. The meeting will include a vote on a proposal to waive the MHC’s right to receive quarterly dividends totaling up to $1.13 per share that may be declared by the Company during the 12-month period following the member vote. All dividends on the Company’s common stock are declared at the discretion of the Company’s Board of Directors. The special meeting will be held on July 12, 2022.

https://www.bamsec.com/filing/138166822000060/2?cik=1381668

2 Likes

I thought the dividend announcement was issued last week. IN any case, there is a motivated seller. I just now bought 10K shares across multiple accounts and brokers and I am able to get 14.87 to $14.88 fill. That’s like I bought 3% of daily trading volume within a penny tells me there is a motivated seller.

Hi Kingran,

About two weeks ago, you posted this:

Right now, the narrative for banks have shifted from “NII increase due to rate increase” to AOCI hit, i.e., the hit they are going to take on MTM (mark to market) on their assets. Small banks like TFSL will have less sticky deposits or the deposits get rolled to higher yielding instruments quickly.

None of this means TFSL is in distress, but I don’t see a reason to get near them now. On the other hand mega-cap banks like Citi trading at significant discount to TBV and Wells (better franchise, US based bank, much of its regulatory issues behind them, investment to meet the regulatory requirements are going on for the last few years, meaning less expense ahead) is getting closer to 1x TBV.

I generally prefer bigger banks, as they can withstand shock better. Of course YMMV.

Can you share with the group what has changed to motivate you to buy 10K shares? I have been thinking about adding, but so far have held off. Would appreciate any insight into what changed your mind, beyond the comments that Jim has posted here.

Thanks!
Murph

Well, we will now see what the regulator thinks of the dividend.

Jim

These are not forever holding position. It is just harvesting dividend and/ or a bounce above $15. I will be gone. I am carrying 30% cash, and this is still 1% position for me. I recently bought some SPY calls also. Do I believe we have seen the low’s? NO. I am expecting a market bounce and if not, I will take my profit/ loss and move on.

I finally invested in TFSL today at $14.90 putting my dividend yield on cost at 7.58%, which I just could not ignore. That and whatever capital gain I might realize makes TFSL a pretty good dividend income investment.

David

At the July 12, 2022 special meeting of members of Third Federal Savings and Loan Association of Cleveland, MHC (the “MHC”), the mutual holding company of TFS Financial Corporation (the “Company”), the members of the MHC (depositors and certain loan customers of Third Federal Savings and Loan Association of Cleveland) voted to approve the MHC’s proposed waiver of dividends, aggregating up to $1.13 per share, to be declared on the Company’s common stock during the twelve months subsequent to the members’ approval (i.e., through July 12, 2023). The members approved the waiver by casting 61% of the total eligible votes. Of the votes cast, 97% were in favor of the proposal. The MHC is the 81% majority shareholder of the Company.

Following the receipt of the members’ approval at the July 12, 2022 special meeting, the MHC will be filing a notice with, and a request for non-objection from, the Federal Reserve Bank of Cleveland for the proposed dividend waivers. Both the non-objection from the Federal Reserve Bank and the timing of the non-objection are unknown at this point.

Jim

3 Likes

The AOCI (Accumulated Other comprehensive Income) drawdown is becoming an issue for the banks. The bond portfolio has take significant hit due to mark-to-market; In the recent Qtr JPM wrote down $8B, this reduced their capital reserve ratio’s and other compliance requirements together pushed them to suspend the buyback.

Let us see what TFSL is going to do.

At last out of it, at least most of it. 3% net, 16% annualized; for 69 days holding.

At last out of it, at least most of it. 3% net, 16% annualized; for 69 days holding.

Okay, Kingran, please tell us why?

David
Long TFSL

I thought I could harvest dividend and get out quickly. I don’t want to own TFSL. I have tons of financials BAC, C, WFC, MA, V, PYPL, BRK.B. I don’t want illiquid names without a clear catalyst and not optionable (if needed I can buy hedges or do covered calls).

I missed May-June lows’, If any of the tech names I like gets cheap, I will buy. Otherwise, I am okay to keep cash.

:frowning: On a positive note, the last 1000 got executed today at 1000.

Thanks, Kingran, for your comments on TFSL.

David