(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 FinancialOceanFirst 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 TheStreet.com'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.
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