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

10 Buy-Rated Bank Stocks With Highest Dividend Yields

2. Valley National Bancorp

Shares of Valley National Bancorp (VLY - Get Report) of Wayne, N.J., closed at $10.03 Thursday, returning 8% year-to-date, following a decline of 16% during 2012. The shares trade for 1.9 times tangible book value and for 15.4 times the consensus 2014 EPS estimate of $0.65. The consensus 2013 EPS estimate is $0.70.

Based on a quarterly payout of $0.1625, the shares have a dividend yield of 6.48%.

Valley National is rated a B-minus (Good) by TheStreet Ratings.

The company had $16.0 billion in total assets as of Dec. 31 and reported 2012 net income of $143.6 million, or $0.73 a share, compared to $132.5 million, or $0.74 a share in 2011. Valley's earnings-per-share declined because the company issued 17 million shares as part of its acquisition of State Bancorp of Jericho, N.Y., in January 2012.

The company's 2012 ROA was 0.91%, declining slightly from 0.94% in 2011.

Guggenheim analyst David Darst has a neutral rating on Valley National Bancorp, estimating the company will earn $0.70 a share this year and also in 2014. Darst said in a report on Jan. 30 that the company's fourth-quarter results reflected "strong mortgage banking activity, which appears to be a much broader effort relative to peers." Darst also said he was still "modeling a slight decline in revenues in 2013."

Valley's net interest margin narrowed to 3.41% in the fourth quarter, from 3.74% a year earlier. Darst wrote that "both NIM pressure and balance sheet declines are creating headwinds relative to mortgage income growth. Additionally, while mortgage banking is an area of expansion, we are not certain VLY's production growth will counter expected cyclical volume decline in 2013."

Still, the analyst expects that a decline in credit costs and some strength in Valley's mortgage business "should provide an opportunity for earnings stability and allow VLY to maintain the dividend and build regulatory capital."

VLY Chart VLY data by YCharts

Interested in more on Valley National Bancorp? See TheStreet Ratings' report card for this stock.
10 of 11

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
BAC $14.55 -1.60%
C $46.28 -0.96%
FMER $22.16 -0.36%
NYCB $15.04 -0.30%
PBCT $15.50 -0.19%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs