Peoples United of Bridgeport, Conn., closed at $12.12 Tuesday, down 2% year-to-date, following a 4% decline during 2011. Based on a quarterly payout of 16 cents, the shares have a dividend yield of 5.24%. For the 12 month-month period ended June 30, the company's dividend payout ratio was 84.
With excess capital -- the company's tangible common equity ratio was 11.47% as of June 30 -- People's United has been aggressively buying back shares, while maintaining the high dividend payout. The shares trade for 1.4 times tangible book value, and for 15 times the consensus 2013 EPS estimate of 83 cents, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is 74 cents.
New York Community Bancorp (NYB) of Westbury has an even higher dividend yield of 6.96%, based on Tuesday's closing price of $14.36, and a quarterly payout of 25 cents.
For the 12-month period ended June 30, New York Community Bancorp performed well, with an operating return on average assets (ROA) of 1.16% and a return on average tangible common equity (ROE) of 15.77%, according to Thomson Reuters Bank Insight. On the other hand, the company paid dividends of just under 90% of its earnings during that period.Over the past several years, some analysts have questioned the company's ability to continue paying a dividend at this level, while others have continued to express confidence that New York Community will be able to maintain the dividend, while building capital. The company has maintained the 12-cent quarterly dividend for 34 consecutive quarters. Here are the five buy-rated bank dividend stocks, in order of ascending dividend yield:
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV