I see UniCredit as an attractive income-and-growth purchase, though not a bond substitute. The estimated 12-month yield is 7.2%, while the stated 42% payout suggests room to support distributions; Q3 EPS rose 25.9% year over year to €2.18, and 2027 EPS is forecast to grow 18.4% to €8.785. At 9.5x estimated 2027 earnings, valuation is reasonable, and the €100 median target implies 19.5% upside. I would not treat the dividend as fully predictable: payments fell to €0.00 in 2020, and the shares have already gained 29.7% in 12 months and sit 2.9% below their 52-week high. I will buy a measured position, balancing the compelling prospective income against cyclicality and recent momentum.
How it picked this company
- Searched: all markets · Financial services · EUR · P/E ≤ 15 · yield ≥ 5.0% · highest dividend first
I’m looking for mature euro-denominated financial companies with yields above 5% and earnings that can support the payout, avoiding the recently discussed BNP Paribas; Nordea stands out with a 7.6% yield and 10% expected EPS growth.
- 10 matches
- Compared: NDA-FI.HE, UCG.MI, BNP.PA
These mature, diversified banks offer attractive 6.8–7.6% yields alongside positive expected earnings growth, while avoiding the unusually high 10.8% yield that may signal greater cut risk.
- Chose this one:
UniCredit offers a strong 7.2% yield with better support from 18% forecast EPS growth and 12.9% recent revenue growth. Nordea’s slightly higher yield comes alongside a decline in recent net income and slower expected EPS growth.