November 15, 2007
Two Dozen High Yielding Financial Stocks
Here are a couple dozen financial stocks with high dividend yields (based upon estimated year-ahead dividends per share) according to the November 16th edition of Value Line. I’m not sure why WM, and many other high yielding financial stocks, isn’t listed? This is a mystery since it shows a 9.2% yield in the index pages, yet it isn’t listed in this screen. Hmmm. (UPDATE: Ah, I see it now, VL is anticipating that WM will slash their dividend in half, ouch.)
- CapitalSource - 15.0%
- Capital Trust - 9.9%
- Amer. Cap. Strategies - 9.6%
- Allied Capital Corp. - 9.2%
- Gladstone Capital - 9.1%
- First Horizon National - 7.6%
- National City Corp. - 7.3%
- AllianceBernstein Hldg. - 6.8%
- Popular Inc. - 6.8%
- Huntington Bancshares - 6.5%
- Citigroup - 6.2%
- Capitol Fed. Fin’l - 6.1%
- Regions Financial - 6.0%
- Fifth Third Bancorp - 5.9%
- FirstMerit Corp. - 5.9%
- Wachovia - 5.9%
- Old National Bancorp - 5.8%
- Comerica Inc. - 5.7%
- New York Community - 5.7%
- Bank of America - 5.6%
- KeyCorp - 5.4%
- BB&T Corp. - 5.3%
- US Bancorp - 5.2%
- Whitney Holding - 5.0%
Cat: | Time: 10:59 am (utc+8)
November 15th, 2007 at 12:58 pm
I like BAC. The only problem with this list is it’s tough to tell which of these financials are going to cut their dividend, like you’re saying with WM.
November 15th, 2007 at 2:45 pm
contrary: Yes, you have to dig a little deeper into their numbers, but this list is a nice starting point.
November 16th, 2007 at 5:55 am
Buying banks for their high div is like buying mortgage bankers for their high subprime market share.
November 16th, 2007 at 1:46 pm
CM: Thank you for running this site, I learn a lot from your Trading for Dummy lessons. You are an inspiration.
The question I have is why not buying/investing the stocks from the list above applying the DUMMY bar idea to the Quarterly chart?
With all the fear running like crazy right now, we may even be able to buy to those same stocks with a higher dividend yield–maybe double of that above–using the Dummy bar principle.
November 16th, 2007 at 3:09 pm
brandon: The dummy setup works well for unusually active, intraday fliers … I’m not so sure it works well on larger time frames.
November 16th, 2007 at 6:21 pm
CM: thanks for publishing the list. I bought BAC on Monday and still own it.
November 16th, 2007 at 7:59 pm
Phileo: You’re welcome. I still own quite a few of those, purchased long ago (and far above, alas).
November 17th, 2007 at 1:03 am
CM: I didn’t mean to say the dummy setup will work for the longer time frame…but at the minimum it will help us to avoid the pain of not knowing where the bottom is.
The reason I am pointing this out is my memory from MO (Phillip Morris–now Altria Group)that pay about 19% of dividend yield in March of 2000 when my friend told me about it. We didn’t do it was because we didn’t know if it will go down any further. If we were to use the dummy setup (too bad I didn’t know about it back then;). Looking back it would definitely help for the dummy setup on the quarterly chart. But then again, everything seem to work out perfectly when we look back. :)
November 17th, 2007 at 8:47 am
brandon: The quarterly is a pretty big time frame … all of these financial stocks are in downtrends so if you buy a reversal above a down bar on the weekly or even monthly chart, it hasn’t been much help because the trend has simply reasserted itself. Incidentally I bought MO around that time because I thought it was a bargain and represented good value, but I didn’t look at the chart to time my entry, I just stepped in.
November 17th, 2007 at 11:11 am
CM: Awesome!!!
November 17th, 2007 at 11:17 am
brandon: Mainly dumb luck, just like all my other great “successes”: being born in America, having smart parents, finding my wife, etc. etc.
November 18th, 2007 at 12:57 am
I don’t own WAMU, but maybe they don’t cut the dividend for the same reason stated on CNBC Fast Money this week, namely to prevent the stock from total collapse?
November 18th, 2007 at 8:59 am
Larry: WM’s stock price has already discounted at least a 50% cut in the dividend, if not more.
November 19th, 2007 at 2:16 am
looks like next postive daily close and wm will bounce to 28ish….i thonl thios round odf subprime panic is over…wont remerge till next years resets and further defaults
November 19th, 2007 at 7:57 pm
I think that Capital Source was taken down in price because of the sub prime mess.It is a commercial lender and manager and is a great investment
November 26th, 2007 at 8:07 am
Many of the stocks from this list I own. Morningstar puts out a newletter for those seaking great dividend paying investment ideas and it has had many on the list in the 5 star buy category for some time, BAC, USB, BBT, ALD, CSE. I sell covered calls on these stocks and feel comfortable doing so and collecting the dividend until the markett becomes rational again. It took me several years to settle on this strategy but in the end I still sleep pretty well at night with these holdings.
November 26th, 2007 at 9:08 am
Todd: I own several of these too, purchased 25 to 50% above current prices — the dividends offer little solace. I still sleep well at night because I have a wonderfully selective memory and like most humans, block out traumatic experiences. ;-)
December 11th, 2007 at 5:23 am
Looks line VL was conservative…WM cuts div 73%.
December 11th, 2007 at 7:45 am
Larry: Yes, but the market appears to have anticipated the cut.