S&P/ASX 300 Index (ASX: XKO) financial stock MyState Ltd (ASX: MYS) is slipping today.
MyState shares closed yesterday trading for $4.38. As we head into the Tuesday lunch hour, shares are swapping hands for $4.33 apiece, down 1.1%.
For some context, the ASX 300 is down 0.1% at this same time.
Taking a step back, MyState shares have outperformed the index over the past year, gaining 18.6% compared to the 7.8% gains posted by the index.
And that doesn't include the 20.5 cents a share in fully franked dividends MyState paid out to eligible stockholders over the full year. At the current share price, that sees the ASX 300 financial stock trading on a fully franked trailing dividend yield of 4.7%.
As for what's next, Ord Minnett's Tony Paterno expects more outperformance ahead for MyState shares (courtesy of The Bull).
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Should you buy the ASX 300 financial stock today?
"MYS is a national diversified financial services group," said Paterno, who has a buy recommendation on the ASX 300 financial stock.
"Brands include MyState Bank, Auswide Bank, Selfco and TPT Wealth," he noted.
MyState released its FY 2025 results on 19 August. Commenting on those results, and citing the first reason the stock is a buy, Paterno said:
The company managed $12.9 billion in home loans at the time of reporting its full-year results in August. It had 275,000 customers across Australia's eastern seaboard. MyState delivered an inline profit result and final dividend in fiscal year 2025.
As for the second reason you might want to buy shares today, Paterno said, "We expect MyState to extract increasing synergies from the Auswide merger in fiscal years 2027 and 2028. Also, integration costs should subside."
And the third reason the ASX 300 financial stock is a buy is its attractive passive income stream.
"MYS is an attractive income stock and should deliver a fully franked dividend yield above its peer banks and the small capitalisation market during the next three years," Paterno concluded.
What's happening with MyState's Auswide merger?
MyState's merger with Auswide was first announced in August 2024 and completed in February this year.
Commenting on that merger following the ASX 300 financial stock's FY 2025 results release, MyState CEO Brett Morgan said, "In FY25, we completed a transformational merger, delivered synergies and maintained a disciplined approach to integration."
Morgan added:
In the four months since the merger, we have grown the total loan book by 7.5% on an annualised basis and achieved annualised synergies of $8.4 million. We remain on track to deliver $20 million to $25 million in annual pre-tax cost synergies over three years.
