Banco Santander SA (SAN-N)

Interest rates will go up after the ECB changes chairs in June 2019. Each quarter they put up $2 billion+ of net income and are trading a hair above book value now, plus negative sentiment to Euro banks now. (3.3% dividend yield, Analysts' price target: $106.76)

He doesn’t own this, but he owns comparable banks. The whole global banking sector is trading at very cheap multiples. They are all under pressure from the flattening yield curve, and they all pay hefty dividends. The bank’s poor performance is sector-driven more than driven by the political issues in the countries where it does business.

He owns this as a European bank holding in the portfolio. The flat yield curve is holding them back. He will continue to hold it for when the yield curve normalizes.

Dividend growth for last 5 years OK, last 10 years negative. Implores investors, please don’t chase yield. Think about long-term growth rate of the dividend. YTD down 14%. Likes that it’s a retail bank, but Spain is a problem right now. Not a lot of growth out of Europe. Impact of Spain separatism is that economy will slow down, loan loss provisions pick up.