Dime Community Bancshares
Polini lowered his rating for Dime Community Bancshares (DCOM) of Brooklyn, N.Y., to "Underperform" from "Market Perform," while leaving his 2012 EPS estimate of $1.20 and his 2013 EPS estimate of $1.15, unchanged.
Dime's shares closed at $12.68 Tuesday, returning 3% year-to-date, after declining 10% during 2011. The shares trade for 1.4 times their reported March 31 tangible book value of $9.15, and for 11 times the consensus 2013 earnings estimate of $1.19. The consensus 2012 EPS estimate is $1.20.
Polini said that Dime's "superior credit quality and balance sheet strength will likely take a back seat to a relatively weak outlook for EPS growth and a relatively high valuation."Based on a 14-cent quarterly payout, the shares have a dividend yield of 4.42%. Dime Community Bancshares was featured on Wednesday as one of five buy-rated bank stocks with attractive dividends that were relatively safe, with the companies paying out less than half of their first-quarter earnings. Interested in more on Dime Community Bancshares? See TheStreet Ratings' report card for this stock.