During the credit crisis, many banks had to move to protect capital by halting buybacks and cutting or eliminating dividends altogether. Now that the crisis is behind us, we are starting to see that path reversed and many analysts think that banks could be one of the leading sectors for dividend growth. Banks are starting to take money out of loan loss reserves as nonperforming loans are decreasing back towards pre-crisis levels, and this adds cash to the income account that can be used to increase dividend payouts.
Investors who favor a dividend growth approach should be adding many of the regional and community banks to their portfolio while they are still cheap. Susquehanna Bancshares (SUSQ) is expected to be one of the leading dividend growth bank stocks. Connecticut-based Webster Financial (WBS) slashed its dividend to preserve capital back in 2009 but have now started to raise the payment once again. East West Bancorp (EWBC) is another bank that has done a fantastic job of ramping up its dividend payout after slashing in 2009 to protect the balance sheet.
Source: InvestorPlace
Related Articles:
- International Securities For A Diversified Income Portfolio
- 5 Dividend Stocks That Gave Me A 20%+ Annualized Return
- 6 Rainy Day Dividend Stocks
- When A Stock Fails To Raise Its Dividend: Is It Time To Sell Intel?
- 4 Dividend Stocks For A Confident And Secure Future
Bank on Dividend Growth With These 3 Stocks
Posted by D4L | Friday, October 24, 2014 | ArticleLinks | 0 comments »________________________________________________________________
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...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
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...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
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...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.