This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Three Bank Stocks With Outsized Dividends

The company, with $8 billion in assets, has seen it shares drop 46% this year. The stock rallied from March until May, but pulled back when United Bankshares announced lower second-quarter earnings from $21.4 million in loan charge-offs.

During the third quarter, charge-offs declined to $4.9 million, the lowest in more than a year. Earnings recovered, with net income of $17.4 million, or 40 cents a share, and a return on average assets of 0.88%. While there was still lot of room for improvement in profits, the company boasted a net interest margin of 3.63%, down slightly from 3.67% in June and 3.71% a year earlier.

The nonperforming-assets ratio was 1.45% as of Sept. 30, up from 1.31% in the previous quarter and 0.77% a year earlier.

United Bankshares paid out much less in dividends than the company earned during the first three quarters of 2009. Over the previous three years, the dividend payout ratio was below 60%. According to SNL, the company's tangible common equity ratio was a decent 5.84% as of Sept. 30.

United Bankshares reported a tier 1 leverage ratio of 8.93% and total risk-based capital ratio (which reflects loan quality and reserve coverage) as of Sept. 30, considerably higher than the 5% and 10% ratios required for most banks to be considered well-capitalized under regulatory guidelines.

For United Bankshares, the dividend appears safe. The stock is trading at 10.3 times current earnings and 1.65 times tangible book value.

Capitol Federal Financial

3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
C $51.62 0.00%
BAC $15.41 0.00%
CFFN $12.45 0.00%
JPM $59.95 0.00%
UBSI $37.50 0.00%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs