Citigroup C- 2019 Top Picks' Mid-Year Update
Jason Clark, contributing editor to The Prudent Speculator, chose Citigroup (C) as his favorite investment idea for 2019. Here's the latest update from the value investing expert. While in the first half of 2019 shares of Citigroup enjoyed a total return of more than 36%, we believe there is still more near- and long-term upside available to investors as the stock has been held back by excessive concerns around declining interest rates and global trade tensions and their potential impact on the company’s globally diversified business model. Citigroup also derives a meaningful part of its top- and bottom-line from Mexico, so the recent avoidance of a dust up between the U.S. and Mexico, plus the potential for the United States-Mexico-Canada trade agreement to be approved in the somewhat near-term are both positives. Despite near-term revenue headwinds, we think the bank is on its way to achieving its low 50s efficiency-ratio target by 2020. And, following the Dodd-Frank Act Stress Test 2019 results, C just announced a planned 13% increase in its quarterly dividend from $0.45 to $0.51 and the repurchase of up to $17.1 billion of its stock over the next year.