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!

5 Expensive Bank Stocks Still Worth Buying (Update 3)

4. U.S. Bancorp

Shares of U.S. Bancorp (USB) of Minneapolis closed at $29.16 Monday, returning 8% year-to-date. Based on a quarterly payout of 12.5 cents, the shares have a dividend yield of 1.71%.

U.S. Bancorp reported fourth-quarter earnings of $1.35 billion, or 69 cents a share, improving from $1.27 billion, or 64 cents a share, during the third quarter, and $974 million, or 49 cents a share, during the fourth quarter of 2010. The company has been one of the strongest earnings performers among regional banks, with its ROA increasing from 1.37% in the fourth quarter of 2010 to 1.61% in the most recent quarter, according to HighlineFI.

The company's fourth-quarter net revenue increased 4% from the third quarter and 7% year-over-year, to $2.4 billion.

Please see TheStreet's detailed earnings coverage for much more on U.S. Bancorp's fourth-quarter results.

During the fourth quarter, the company repurchased 6 million shares under its 50 million share authorization.

CEO Richard Davis said on Jan. 18 that following the completion of the Federal Reserve's stress tests in March, U.S. Bancorp would look "forward to moving closer to our long-term goal of returning a majority of our earnings to shareholders in the form of dividends and buybacks."

Morgan Stanley analyst Betsy Graseck on Jan. 18 reiterated her "Overweight" rating for U.S. Bancorp, with a price target of $32, and said she expected the "quarterly dividend to increase +31% from 13c to 17c in 2012, total yield from 2.3% to 5.1%, and total payout ratio [including dividends and share buybacks] from 28% to 58%."

The shares trade for 2.7 times tangible book value and for 11 times the consensus 2012 EPS estimate of $2.68.

The shares rose 1% on Wednesday, to close at $29.63.

Interested in more on U.S. Bancorp? See TheStreet Ratings' report card for this stock.

3 of 6

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 17,051.73 -48.45 -0.28%
S&P 500 1,973.63 -4.59 -0.23%
NASDAQ 4,424.7040 -7.4420 -0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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