Citigroup: Quiet Potential For High Total Returns
Summary
- Citigroup is making concrete moves to streamline its business and become more profit-centric.
- Financials are healthy, the valuation is attractive, and margins are improving.
- C stock pays an attractive 4.5% yield and has lots of excess capital to return to shareholders in the form of buybacks.
- Instead of purchasing a stock outright, selling put options is the best way to generate a yield from the underlying operations while mitigating downside risk.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in C over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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