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

8. Washington Banking Co.

Shares of Washington Banking Co. (WBCO) of Oak Harbor, Wash., closed at 13.74 Thursday, returning 2% year-to-date, following a 19% return during 2012. The shares trade for 1.2 times tangible book value and for 12.0 times the consensus 2014 EPS estimate of $1.15. The consensus 2013 EPS estimate is $1.13.

Based on a quarterly payout of $0.15, the shares have a dividend yield of 4.37%.

Washington Banking Co. is rated an A-minus (Excellent) by TheStreet Ratings.

The company had $1.7 billion in total assets as of Dec. 31 and reported 2012 net income available to common shareholders of $16.8 million, or $1.09 a share, increasing from $14.9 million, or $0.97 a share, in 2011. The 2012 ROA was 1.00%, improving from 0.95% the previous year.

KBW analyst Jacquelynne Chimera rates Washington Banking Co. "outperform," with a $17 price target, estimating the company will earn $1.10 a share this year, with EPS increasing to $1.15 in 2014.

Chimera said in a report on Feb. 1 that she expected "continued loan growth and expense management to help combat net interest margin pressure in the current low-rate environment."

"Management is engaged in M&A discussions," Chimera wrote, "and to the extent the company is able to complete a deal, we believe this would prove accretive to earnings and beneficial to the franchise as a whole."

Washington Banking Co.'s net interest margin narrowed sharply to 5.23% from 5.48% the previous quarter. But Chimera expects the decline in net interest income to be partially offset by strong loan growth of 6.5% this year and 6.9% in 2014.

Interested in more on Washington Banking Co.? See TheStreet Ratings' report card for this stock.

4 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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BAC $15.56 0.00%
C $52.80 0.00%
FMER $18.79 0.00%
PBCT $15.08 0.00%
NYCB $16.77 0.00%


DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs