Tompkins Financial

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Another high-paying dividend regional bank is Tompkins Financial ( TMP). The New York banking concern has a market capitalization of $442 million and pays a dividend of 3.4%. Its shares recently moved into positive territory after being down most of the year. The stock is up 4% year-to-date.

In addition to its strong dividend yield, Tompkins is growing profits at a double-digit rate. For 2010 the company made a profit of $3.11 per share, 13% better than the year prior. For 2011, profit growth is expected to be only 3% to $3.21 per share, but the estimate jumps 11% to $3.57 per share in 2012. Investors can buy that growth for just 13 times 2011 estimated earnings and 1.57 times book value.

About the only negative with Tomkins is the lack of diversification. It operates in one state, New York. That narrow focus is not likely to attract any suitors. The stock is not likely to be a takeover candidate.

That said, you can buy shares at a reasonable price and get paid a high dividend to hold the stock for that double-digit profit growth. Investors can't ask for much more.

To see these stocks in action, check out the 5 Regional Bank Stock Plays portfolio.

-- Written by Jamie Dlugosch in Minneapolis.

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At the time of publication, author had no positions in stocks mentioned.

Jamie Dlugosch is a founder and contributor to MainStreet Investor and MainStreet Accredited Investor. Formerly, he was president and CEO of Al Frank Asset Management. He has contributed editorially to The Rational Investor, The Prudent Speculator, Penny Stock Winners and InvestorPlace Media.

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