PNC has been one of the weakest of the large-cap bank stocks this year, with shares down 1% year-to-date through Friday's close, while the KBW Bank Index (I:BKX) was up 25% to 49.33. Then again, PNC held up quite well during a rough 2011 for bank stocks, dipping only 3%, while the KBW Bank Index dropped 25%.
Fifth Third Bancorp (FITB) is in third place on Cannon's list of large-cap banks expected to see significant dividend growth in 2013, with the yield on common shares expected to rise to 3.58%, from the current yield 2.2.75%, based on a 10-cent quarterly payout and Friday's closing price of $14.53. Cannon expects Fifth Third to pay dividends totaling 52 cents a share in 2013.
For more aggressive investors, KBW's list of "High-Yielding Stocks in 2013," includes at the top Chimera Investment Corp. (CIM), a real estate investment, with a current dividend yield of 13.09%, based on a nine-cent quarterly payout and Friday's closing price of $2.75. KBW is expecting the payout to remain the same in next year, with the shares pulling back by 5%, for a 2013 dividend yield of 13.1%. Of course, a surprising acceleration in the U.S. economy and/or a change in policy by the Federal Reserve could lead to a reversal in the direction of interest rates, and a change in KBW's outlook.
-- Written by Philip van Doorn in Jupiter, Fla.>Contact by Email. Follow @PhilipvanDoorn
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