After saying I though there is an 10% gain in WBC today. I though I should put my money where my mouth is. So I have purchased a parcel of WBC shares.

They were down circa 5% today or roughly $2.00, at the close of the trading day. My thinking is. On their dividend history they will pay a 77c dividend in December. Which when you gross it up, because WBC pays fully franked dividends, it becomes a $1.00 dividend and form here once the dust settles on the housing market and loan applications and housing credit growth starts to tick up again. We will see their share price return to $38-40 and throw in the $1.00 grossed up div and you have your 10% return.

Once again I think the market has over reacted here and some weaker hands have folded. Also, there is the rivers of cash that keep coming from superannuation that keep being invested into the banks and supporting their share prices long-term.

I have a 12-month time frame for this investment theory to play out and to get the 10% return. Average cost per share is $36.73. So $40.40 is the mark I get a 10% return or $39.40 plus the $1.00 grossed up dividend. let’s see how it plays out 🙂