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

New York Community Bancorp: Financial Winner

NEW YORK ( TheStreet) -- New York Community Bancorp (NYB) was the winner among the largest U.S. financial names on Tuesday, with shares rising 1.5% to close at $12.98.

The broad indexes saw a second day of slight declines, as investors digested several positive economic reports, and the Federal Reserve Open Market Committee began a two-day meeting, with investors looking for some sign of further economic stimulus.

The U.S. Commerce Department on reported that personal income rose 0.5% in June after increasing by an upwardly revised 0.3% the previous month. Personal spending was unchanged during June, after a downwardly revised 0.1% decline in May. Economists polled by Thomson Reuters had predicted that personal income would rise by 0.4% in June and that personal spending would increase by 0.1%.

The Bureau of Labor Statistics reported that compensation costs for civilian workers increased by a seasonally adjusted 0.5% for the three-month period ended June 2012, matching economists' expectations.

The KBW Bank Index (I:BKX) declined slightly to close at 45.52, with 20 of the 24 index components showing declines for the session.

New York Community Bancorp's shares have now returned 9% year-to-date, following a 30% decline during 2011.

New York Community's shares trade for 1.8 times their reported June 30 tangible book value of $7.14, and for 12.5 times the consensus 2013 earnings estimate of $1.04, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is $1.11.

Based on a quarterly payout of 25 cents, the shares have a dividend yield of 7.70%.

With one of the most generous payouts on common shares in the banking industry, some analysts have been questioning the company's ability to maintain its dividend for years, but New York Community Bancorp has managed to maintain the 25-cent quarterly dividend for 34 consecutive quarters.

The company last Wednesday reported second-quarter earnings of $131.2 million, or 30 cents a share, increasing from $118.3 million, or 27 cents a share, during the first quarter, and $119.5 million, or 27 cents a share, during the second quarter of 2011. The sequential earnings improvement mainly reflected an increase in mortgage banking income to $58.3 million during the second quarter, from $35.2 million the previous quarter.
1 of 2

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
AAPL $92.59 -0.70%
FB $118.14 0.28%
GOOG $705.04 0.51%
YHOO $36.80 -0.38%
TSLA $209.34 -1.00%


Chart of I:DJI
DOW 17,590.58 -70.13 -0.40%
S&P 500 2,042.16 -8.47 -0.41%
NASDAQ 4,689.8610 -27.2330 -0.58%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs