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
TheStreet Open House

9 Bank Dividend Stocks Bringing Sanity to Market Madness

F.N.B. Corporation (FNB - Get Report) of Hermitage, Pa., closed at $9.06 Thursday, declining 5% over the previous week, and down 6% year-to-date. Based on a quarterly payout of 12 cents, the shares have a very attractive dividend yield of 5.30%. The shares trade for 10 times the consensus 2012 earnings estimate of 84 cents a share.

KBW analyst Damon DelMonte describes F.N.B. "as having one of the best opportunities for organic growth within its current footprint," with its recent deal to acquire Parkvale Financial and the "the ongoing hotbed of activity surrounding the Marcellus Shale gas field." The Parkvale deal is valued at $130 million, and will bring on $1.8 billion in assets and 47 additional branches in the Pittsburgh area.

DelMonte says that "this an excellent time to own the shares of FNB," since the dividend is now "north of 5%," and the company "operates in one of a few areas in the country which is slated to experience heightened new loan activity."

DelMonte also has an "Outperform" rating for First Niagara Financial Group (FNFG - Get Report) of Buffalo, N.Y., which is continuing its aggressive regional expansion with its deal to acquire HSBC's (HBC) retail branch network in Upstate New York and Connecticut. The shares closed at $10.63 Thursday, pulling back 6% from a week earlier, but down 21% year-to-date.

Based on a quarterly payout of 16 cents, First Niagara's shares have a dividend yield of 6.02%. The shares trade for just over eight times the consensus 2012 EPS estimate of $1.23.

DelMonte says that despite "investor apathy" over the HSBC deal, -- which will end up with First Niagara closing or selling about 100 of the acquired branches to alleviate the U.S. Justice Department's anti-trust concerns -- the end result of the company's expansion will be "not only a bigger bank, but one with a sound balance sheet with stronger earnings momentum." The analyst also says that First Niagara's "credit remains steady like a rock," and that "the bank's dividend policy should be viewed as a safe-haven for investors during a time of market volatility."

Hancock Holding Company (HBHC - Get Report) of Gulfport, Miss., was recently featured among TheStreet's 10 Big Banks With Solid Revenue, with strong second-quarter revenue growth, from a year earlier.

2 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!
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%


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