This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bank Stocks That Pay Outsized Dividends

Stocks in this article: OCFC RNST HCBK

(The following story is the last in a two-part series on bank and thrift stocks that outperformed their peers last year and still pay attractive dividends. Three bank stocks were featured yesterday.)

NEW YORK ( TheStreet) -- Bank shares, as measured by the S&P 500 Regional Banks Index, have soared 142% since the stock-market low in early March, leaving companies with skinny dividends.

Following an earlier look at three bank stocks with outsized dividends, published in November, this expanded list features more conservative measures, excluding companies whose dividend payouts exceeded their 2009 net income.

The group was pared further by leaving out current participants in the Troubled Asset Relief Program, or TARP. Thinly traded names were also avoided, as were those with a Texas ratio of more than 20%. (The Texas ratio is nonperforming loans/core capital and loan-loss reserves.)

Yesterday's story featured New York Community Bancorp (NYB), United Bankshares (UBSI) and OceanFirst Financial (UCFC).

OceanFirst Financial

OceanFirst Financial (OCFC), based in Toms River, N.J., is yielding about 4.8% after the company cut its quarterly dividend to 12 cents from 20 cents. (See's Banks to Watch After TARP Redemption for a discussion of the company's fourth-quarter earnings and prospects.)

Renasant Corp.

Renasant Corp. (RNST), based in Tupelo, Miss., had assets of $3.6 billion as of Dec. 31. Based on a quarterly dividend of 17 cents, the shares yield 4.73%.

While its Dec. 31 nonperforming-asset ratio of 2.98% was the highest on the list, Renasant's Texas ratio was a moderate 15.15%, because more than half of the nonperforming assets were repossessed real estate.

Looking deeper at asset quality, the ratio of net charge-offs to total loans for 2009 was 0.91%, with the pace peaking at 1.12% in the third quarter and slowing to 0.83% in the fourth quarter. Loan-loss reserves covered 1.67% of total loans as of Dec. 31.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs