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
TheStreet Open House

9 Bank Dividend Stocks Bringing Sanity to Market Madness

NEW YORK ( TheStreet) -- Keefe, Bruyette and Woods says that regional banks with "compelling dividend yields" make for excellent "defensive ideas for a volatile market," in a report issued Friday.

The regional bank names listed by KBW include "franchises that can justify higher valuations given the returns they generate above their cost of equity," that also offer attractive dividends and "are in control of capital management decisions, as they are not subject to restrictions that come with certain forms of capital," such as federal bailout funds received through the Troubled Assets Relief Program, or TARP.

The following nine regional banks are rated "Outperform," or buy, out of the 16 banks discussed in the KBW report.

Bryn Mawr Bank (BMTC) of Bryn Mawr, Pa., closed at $18.16 Thursday, declining 5% from a week earlier, but up 6.5% year-to-date. Based on a quarterly payout of 15 cents, the shares have a dividend yield of 3.30%. The shares trade for 9.5 times the consensus 2012 earnings estimate of $1.86, among analysts polled by FactSet.

KBW analyst Christopher McGratty says Bryn Mawr Bank's "core fundamental trends remain solid as the company has posted mid-teen tangible returns on average equity over the past three quarters," adding that "the company is likely to actively manage its capital position, presumably through organic growth and strategic acquisitions of banks or in the wealth management space."

CVB Financial (CVBF - Get Report) of Ontario, Calif., closed at $8.26 Thursday, pulling back 9% from a week earlier, and down 2% year-to-date. Based on a quarterly payout of 9 cents, the shares have a dividend yield of 4.12%. The shares trade for 10 times the consensus 2012 earnings estimate of 78 cents a share.

KBW analyst Julianna Balicka points out that CVB Financial "has been profitable for over 136 consecutive quarters and has had 87 consecutive quarters of dividends," and has survived "a number of real estate-related downturns" in its market area of California's Inland Empire Region, since 1974. The analyst also touts the company's excess capital and the remaining 9.4 million shares authorized for repurchase. CVB's strong capital position has the company "well positioned as an acquirer, offering an attractive stock currency and an attractive franchise for a smaller bank to join," according to Balicka.

1 of 5

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
CVBF $15.72 0.00%
FNB $12.90 0.00%
FNFG $8.79 0.00%
HBHC $29.12 0.00%
WABC $42.94 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

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