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10 Bank Dividend Stocks

F.N.B. Corporation

The highest-yielding bank or thrift stock on our selected list is F.N.B. Corporation (FNB - Get Report) of Hermitage, Penn. The shares closed at $7.77 Friday, up 18% year-to-date, and were yielding 6.18% on a quarterly dividend payout of 12 cents.

F.N.B. had $8.8 billion in total assets as of June 30. The company announced on August 9 a definitive agreement to acquire Comm Bancorp (CCBP) of Clarks Summit, Penn. for a combined $70 million in cash and stock. The deal is expected to be completed in the fourth quarter of 2010. Comm Bancorp had 15 branches in Northeastern Pennsylvania and $642 million in total assets as of June 30.

In an investor presentation the following day, FNB's senior management emphasized the company's experience successfully integrating seven previous acquisitions since 2002 and how the combined company might benefit from the Marcellus Shale, which, when fully developed, has "potential to be the second largest natural gas field in the world."

Guggenheim Securities analyst David Darst agreed that FNB was quite successful with previous merger integrations, acquiring since 2004 total assets of "$3.4 billion with no significant increase in risk or loss profile," although he maintained a neutral rating, with a 12-month price target of $9.00.

Then again, based on Friday's close at $7.77, the target price would be a 16% gain, and an investor would receive a fat dividend yield while waiting.

Hudson City Bancorp

Hudson City Bancorp (HCBK - Get Report) of Paramus, N.J., has received so much positive press in light of its success through the credit crisis, low valuation to tangible book value and high efficiency, that it's difficult to add anything new to the story. Shares closed at $11.96 Friday, down 10% year-to-date, and were yielding 5.02% on a 15-cent quarterly payout.

Please see TheStreet's second-quarter earnings coverage for more on Hudson City's overall performance and a discussion on other highly-efficient banks and thrifts.

It's fascinating that so many analysts covering the shares lack conviction. Even with this low-risk play selling for just 1.2 times tangible book value, only 5 out of 17 analysts covering Hudson City had buy recommendations on the shares, and two had sell ratings, according to Bloomberg.

TrustCo Bank Corp

The third-highest yielding stock on our selected list was TrustCo Bank Corp NY (TRST - Get Report), which was yielding 4.84% Friday, based on a closing price of $5.46 and the company's new quarterly dividend of 6.6 cents a share, announced last Tuesday, when the company increased the payout by 10%. The Shares were down 12% year-to-date as of Friday's close.

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AF $12.94 -0.08%
CVBF $15.79 -0.94%
FNB $13.15 0.08%
FFIC $20.29 1.10%
HCBK $10.41 -0.67%


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