Yield-starved investors soon may have another place to reap higher dividends: bank stocks. The sector has long been popular with retail investors because of its healthy dividends. But banks were forced to cut or suspend their payouts during the financial crisis. Now, many are anxious to raise dividends or buy back shares to underscore their improved health. But before they can, banks must pass the Federal Reserve's latest "stress test"—the results of which will be disclosed to them later this month.
Bank stocks have run up in recent months partly on anticipation of higher dividend yields. On Tuesday, shares of Bank of America, whose current dividend yield is 0.28%, jumped 4.7% on news that it had asked the Fed to allow it to approve a "moderate" increase in its dividend in the second half of the year. Other financial stocks, including J.P. Morgan, American Express Co., PNC Financial Services Group Inc., Citigroup Inc. and Wells Fargo & Co. also rose in trading on Tuesday.
Source: Wall Street Journal
Related Articles:
________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
A select group of monthly dividend stocks pays dividends at a rate of 10% or higher. Those are the ones on this list. Investors should be aw...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.