NEW YORK (TheStreet) -- The dividend -- long one of the prime reasons to purchase a bank stock -- is showing signs of making a comeback in the sector.
Whether it's because of savvy strategy or the impact of an improved economy on the bottom line, a number of banks and other financial companies are once again starting to see dividend payments as an attractive use of capital. Even some firms that have only recently shed their bailout shackles are looking to boost payouts again.
Visa (V), which never accepted bailout funds, this week became the first major financial firm to boost its dividend, lifting its quarterly payout to 12.5 cents a share from 10.5 cents. Bailout recipients JPMorgan Chase (JPM), U.S. Bancorp (USB) and State Street (STT) all recently indicated a desire to lift quarterly distributions as well, after having cut them dramatically over the past year or so. A key factor holding them back is the promise of more stringent regulatory capital requirements, although when the Federal Reserve will unveil those standards, or what the extent of those standards will be, remains unclear.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV