While regional banks used to be our best bet when it came to dividends, the housing bust changed the entire landscape, with U.S. banks generally paying out nominal dividends as they struggle to achieve a certain degree of stability. In spite of their recent slide, financial stocks have performed well this year, with financials in the S&P 500 Index (INDEX: ^GSPC) up 11%.
Keeping this overall situation in perspective, let's take a closer look at two regional banks that have displayed growth potential, strong balance sheets, and a proven ability to increase their returns: US Bancorp (NYSE: USB) and PNC Financial (NYSE: PNC).Regional banks appear to be making a comeback. They look increasingly attractive from an income standpoint, and over the next several years we should expect further improvement as the economy strengthens. These two regional players are both offering reasonable dividend yields and may just be the stocks you can bank on.
Source: Motley Fool
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