#3 - Grupo Aval (NYSE:AVAL)
This is a penny stock that’s not a brand name for a couple of reasons. First, it’s a holding company. And second, its holdings are largely in Colombian and other Central American banks. However we said we were looking for hidden gems, and that’s what Grupo Aval (NYSE:AVAL) provides.
First, you have to look at Colombia’s banking system which is dominated by three major banking companies. One such bank is Banco de Bogota which is held by Grupo Aval. The big three banks benefit from above-average loan margins and substantial fee income.
2020 was rough for AVAL stock. The stock crashed 58% at the onset of the pandemic and it’s never been able to make it all the way back. But this is somewhat misleading. At the stock’s pre-pandemic level, it was up 34% over the prior four years. That may not blow you away. But one reason for the tepid growth is the company’s monthly dividend which currently has a 4.82% yield.
About Grupo Aval Acciones y Valores
Grupo Aval Acciones y Valores SA provides a range of financial services and products to public and private sector customers in Colombia and Central America. It offers traditional deposit services and products, including checking accounts, savings accounts, time deposits, and other deposits. The company also provides commercial loans comprising general purpose loans, working capital loans, leases, loans funded by development banks, corporate credit cards, and overdraft loans; consumer loans, such as payroll loans, personal loans, automobile and other vehicle loans, credit cards, overdrafts, leases, and general purpose loans; and microcredit and mortgage loans.
Read More - Current Price
- $2.47
- Consensus Rating
- Sell
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- N/A
