8. City Holding Company
Shares of City Holding Company (CHCO) of Charleston, W.V., closed at $30.93 Friday, with a flat return over the previous year. Based on a quarterly payout of 34 cents, the shares have a dividend yield of 4.40%.
City Holding Company was the highest-yielding bank stock included in our previous list of 10 Bank Dividends with Room to Rise.During the first quarter, the company repurchased 270,745 common shares at a weighted average price of $34.62, and said that as of March 31, it was authorized to buy back another 294,000 shares. The company had $2.7 billion in total assets as of March 31, with 68 offices in West Virginia, Kentucky, and Ohio. First-quarter net income was $9.6 million, or 62 cents a share, increasing from $9.3 million, or 58 cents a share, a year earlier. For both periods, the provision for loan losses was $1.1 million. Service charge income declined 11% year-over-year to $9.1 million during the first quarter, showing the effects of the Electronic Funds Transfer Act and Federal Reserve Board Regulation E, with the new "opt-in rules" for expensive overdraft protection on ATM and debit transactions and the "implementation of an enhanced customer service providing 'real-time' processing of electronic transactions," combining to reduce checking account service fees. Despite the fee revenue decline, City Holding Company's first-quarter return on assets of 1.44% was the highest among this group of 10 banks. The company's dividend payout ratio has ranged between 50% and 59% over the past five quarters. Following the company's first-quarter earnings announcement, Kenneth James of Sterne Agee reiterated his neutral rating on the shares, saying they were likely to remain bound within a range of $30 to $35. The analyst lowered his 2011 earnings estimate by seven cents to $2.44 a share, and his 2012 estimate by 12 cents to $2.64 a share. The analyst consensus is for City Holding Company to earn $2.48 a share for 2011. The shares trade for 12 times the consensus 2012 earnings estimate of $2.65 a share. All nine analysts covering City Holding Company have neutral ratings on the shares.
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