This Day On The Street
Continue to site
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 Stocks With Dividend Yields Up to 8% (Update 1)

8. Hudson City Bancorp

Shares of Hudson City Bancorp (HCBK) of Paramus, N.J., closed at $5.85 Thursday, down 53% year-to-date. Based on a quarterly payout of eight cents, the shares have a dividend yield of 5.47%.

Hudson City Bancorp lost $555.6 million, or $1.13 a share, during the first quarter , after being forced by the Office of Thrift Supervision to restructure its balance sheet, after the company's long-term leverage strategy of borrowing from the Federal Home Loan Bank of New York and investing the proceeds in securities backfired in a prolonged low-rate environment.

The company also lowered its quarterly dividend to 8 cents a share, from 15 cents a share.

Hudson City returned to profitability in the second quarter, with earnings of $96 million, or 19 cents a share, declining from $142.6 million, or 29 cents a share, during the second quarter of 2010. Total assets were $51.8 million as of June 30, declining 15% from a year earlier, reflecting the first-quarter deleveraging. The deleveraging also led to an increase in Hudson City's net interest margin to 2.14%, from 1.72% in the first quarter and 2.13% in the second quarter of 2010.

Hudson City's second-quarter ROA was 0.74% according to SNL, declining from 0.93% a year earlier. This reflects the company's industry-leading efficiency. The company's second-quarter efficiency ratio -- essentially the number of pennies of expenses for each dollar of revenue -- was a tax-adjusted 30.26 according to SNL, which was by far the lowest and best among the large regional holding companies.

Matthew Kelley of Sterne Agee in September reiterated his neutral rating on the shares, saying that "without a restructuring, in a sustained low rate environment we see the balance sheet shrinking and margins compressing for an extended period." Kelly added that a second restructuring of Hudson City's long-term borrowings "combined with a capital raise could put the company in a much better position to grow and take advantage of wider spreads and a more robust private mortgage market in the future."

The shares trade for eight times the consensus 2012 earnings estimate of 73 cents a share, among analysts polled by FactSet.

Out of 15 analysts covering Hudson City, 14 have neutral ratings and one analyst recommends selling the shares.
4 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
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HCBK $0.00 0.00%
AF $15.04 0.00%
FNFG $10.56 0.00%
PBCT $15.50 0.00%
TRST $6.41 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs