This Day On The Street
Continue to site right-arrow
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 Liquid Bank Stocks With Highest Dividend Yields


7. First Niagara Financial Group

Shares of First Niagara Financial Group (FNFG) of Buffalo, N.Y., closed at $13.73 Friday, returning 8% from a year earlier. Based on a quarterly payout of 16 cents, the shares have a dividend yield of 4.66%.

The company on April 15 completed its acquisition of NewAlliance Bancshares of New Haven, Conn., for roughly $1.5 billion in cash and stock, increasing First Niagara's total assets to about $30 billion, with over 300 branches in Connecticut, Massachusetts, Pennsylvania and Upstate New York.

First-quarter net income was $44.9 million, or 22 cents a share, increasing from $28.9 million, or 16 cents a share in the first quarter of 2010. The provision for credit losses declined slightly from a year earlier to $12.9 million.

Pre-provision net revenue for the first quarter was $86 million, increasing 30% from a year earlier, as the company grew its balance sheet 43%, mainly from its acquisitions of Harleysville National in April, 2010.

First Niagara's first quarter ROA was 0.85% and its dividend payout ratio was 73%. The payout ratio has ranged from 64% to 140% over the past year.

The consensus among analysts is for the company to earn a dollar a share in 2011. The shares trade for 12 times the consensus 2012 earnings estimate of $1.15 a share.

With HSBC (HBC) recently indicating a desire to sell-off its Upstate New York retail branches, David Darst of Guggenheim said in a report on June 1 that First Niagara was looking at another "considerable opportunity" to expand, with other possible acquirers of the branches including M&T Bank (MTB) KeyCorp (KEY) TD Bank (TD) and Capital One (COF). Darst has a neutral rating on First Niagara, with a $14 price target.

The ten analysts covering First Niagara are evenly split between buy and hold ratings.

5 of 11

Select the service that is right for you!

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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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