This Day On The Street
Continue to site
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

10 Bank Dividends with Room to Rise

7. Provident Financial Services

Shares of Provident Financial Services (PFS - Get Report) of Iselin, N.J., closed at $13.99, returning 13% over the previous year. Based on a quarterly payout of 12 cents, the shares have a dividend yield of 3.43%. The company raised the dividend a penny on April 28, when it reported its first-quarter results.

First-quarter net income was $12.9 million, or 23 cents s share, increasing from $11.2 million, or 20 cents s share, in the first quarter of 2010. The first-quarter provision for loan losses declined to $7.9 million from $9 million a year earlier. Net interest income increased 5% year-over-year, as funding costs declined.

The net interest margin increased to 3.47% in the first quarter from 3.31% a year earlier, according to SNL Financial, as funding costs declined. The first-quarter ROA was 0.76%.

Following the earnings release, Matthew Kelly of Sterne Agee reiterated his neutral rating on the shares, pointing out some coming expense reductions, as "FDIC insurance premiums are set to decline by 37% or $0.7 mil. per quarter," and the company will also be consolidating its administrative offices. Kelly increased his 2011 earnings estimate for Provident Financial to $1.06 a share from a dollar, and his 2012 earnings estimate to $1.12 a share, from $1.10.

The shares trade for 12 times the consensus 2012 earnings estimate of $1.17 a share.

Out of seven analysts covering Provident Finance Services, three rate the shares a buy, while the remaining analysts all have neutral ratings.

5 of 11

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
Submit an article to us!
SYM TRADE IT LAST %CHG
CBU $34.79 0.00%
BOH $60.38 0.00%
CFR $74.03 0.00%
FFBC $16.68 0.00%
HCBK $9.47 0.00%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs