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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

10 Bank Dividend Stocks: 2010 Roundup

Stocks in this article: WMT CFFND BXS NYB TOBC PRK VLY FNB HCBK PBCT FNFG CTBI

NEW YORK ( TheStreet) -- Bank stocks with high-dividend yields have been a favorite subject for TheStreet's readers through 2010. With price appreciation for some -- and a recent conversion for one high payer -- the landscape is quickly changing.

Using data supplied by SNL Financial for publicly traded U.S. banks and thrifts -- excluding those traded on the Pink Sheets -- TheStreet has narrowed down the list to the ten names with the highest dividend yields. Critieria also include stocks that have earnings estimates and price targets available for 2011 and are covered by at least three analysts.

While a yield of at least 4.09% might not be very exciting to some stock investors, it compares favorably to the 10-year U.S. Treasury benchmark bond yield of 3.41% as of Monday's close, as well as the 3.80% yield on Walmart's (WMT) 10-year bond that was issued in October. Of course, the common stock investor may also enjoy long-term growth.

The holding company that would have topped our list is Capitol Federal Financial (CFFND) of Topeka, Kan., with a dividend yield of 7.54% based on its last quarterly dividend of 22 cents per public share and a closing price of $11.72 Monday. However, the company completed its second-step conversion to full stock ownership on December 21 and its dividend policy will be changing.

According to the offering prospectus, Capitol Federal Financial will pay a one-time special dividend of 60 cents a share, subject to regulatory approval. With a very large capital war chest following the conversion, the company plans to pay-out 100% of its earnings for the next two fiscal years, anticipating a quarterly dividend of about 7.5 cents a share. This would represent a regular dividend yield of 2.56% based on Monday's closing price.

With Capitol Federal strongly capitalized even before it raised $1.2 billion in common equity through the conversion, this is now a growth story for investors.

Here are the ten bank and thrift stocks with high dividend yields meeting our criteria:

Terms

For each of the 5 banks discussed on the following pages, we'll be looking at capital strength, earnings quality and asset quality. For an explanation of those terms you can click on the box below.

1 of 11

Select the service that is right for you!

COMPARE ALL SERVICES
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!

Markets

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 Bankrate.com

  • 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