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

10 New York Bank Stocks With Most Upside for 2012

9. New York Community Bancorp

Shares of New York Community Bancorp (NYB) of Westbury closed at $11.97 Friday, declining 32% year-to-date. Based on a quarterly payout of 25 cents, the shares have a dividend yield of 8.35%. This is the highest dividend yield among actively traded banks (excluding those listed on the Pink Sheets) with average daily trading volume of at least 50,000 shares, according to data provided by SNL Financial.

A consensus price target of $14.24 implies 19% upside for the shares.

New York Community Bancorp has maintained the 25-cent quarterly dividend payout for 31 consecutive quarters, however, some of the pressure on the shares this year has resulted from a high dividend payout ratio, with the company paying out over 90% of operating earnings over the past two quarters.

Investors will be looking for increased revenue from the company's mortgage business -- acquired when New York Community purchased the failed AmTrust Bank of Cleveland from the Federal Deposit Insurance Corp. in December 2009 -- to boost earnings in 2012.

Guggenheim Securities analyst David Darst in October reiterated his "Buy" rating for New York Community, after the company reported its third-quarter results, saying that "the dividend is secure and is a key component of investor return," and that he expected the lender to "grow core earnings over the next two years by deploying liquidity into loans with improving market conditions for core loan growth." Darst's price target for the shares is $15.00, and he expects the company to earn $1.09 a share in 2012.

The shares trade for 10.9 times the consensus 2012 EPS estimate of $1.10, among analysts polled by FactSet, and for 1.7 times tangible book value, according to SNL.

Out of 18 analysts covering New York Community Bancorp, eight rate the shares a buy, nine have neutral ratings, and one analyst recommends selling the shares.

Interested in more on New York Community Bancorp? See TheStreet Ratings' report card for this stock.

3 of 11

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASDAQ 4,527.6890 -52.10 -1.14%

Brokerage Partners

Rates from Bankrate.com

  • 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