In 2007 the financial sector was responsible for $51 billion in dividend payments to shareholders. By 2010, that amount had decreased to just $19 billion. The mortgage crisis forced many banks to cut or even suspend dividend payments. Returning the clock to present day, it is hard not to get excited about the potential for bank stocks in the current market. The Financial Sector ETF (XLF) has gained nearly 20% since the beginning of the year. The majority of banks are passing the government mandated "stress tests" and dividend payments are increasing on a regular basis once again.
It's interesting to see the similarities among the stocks in each of these three groups. WFC and JPM each have had strong dividend growth while paying around 3% yield. TD, BMO and BNS all are paying 4% or more with similar payout ratios but have had increases in the low single digits. FLIC and SASR are each paying around 3% with higher dividend increases, but do not have near the dividend history that the larger banks have. Since I already hold PNC I am leaning towards diversifying away from the large U.S. banks despite WFC and JPM's impressive dividend growth. SASR and FLIC have made strong comebacks from the recent financial crisis and still appear to have room for dividend growth based on their current payouts.
Source: Seeking Alpha
Related Articles:
- 8 Stocks With Strong Dividend Growth Metrics
- 10 Dividend Stocks Balancing Yield And Growth
- Defense Stocks May Not Be Defensive Stocks
- 10 Dividend Stocks That Gave Me A 20%+ Annualized Return
- All Investments Carry Risk
Banking Stocks For Current Yield And Future Dividend Growth
Posted by D4L | Monday, June 03, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
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...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
If you are looking for high-yield dividend stocks that can beat the market, you might want to check out these three companies. They all have...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contribut...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.