The Fed to OK Dividend Hikes

A few weeks ago, I took a look at potential dividend increases for the financial sector. The Federal Reserve has now said that it’s ready to let “healthy” banks raise their dividends: “Under the guidelines, banks also would need to show the Fed they have a plan to comply with stricter global capital requirements recently agreed to in Basel, Switzerland.”

Here’s the chart I made. It’s not a prediction, but it shows the reasonable potential for financial sector dividends:

Company Ticker Symbol Peak Dividend Current Dividend Dividend Potential Potential Yield
Allstate ALL $0.41 $0.20 $0.34 4.2%
Bank of America BAC $0.64 $0.01 $0.12 3.7%
BB&T BBT $0.47 $0.15 $0.17 2.8%
Bank of New York Mellon BK $0.24 $0.09 $0.22 3.3%
Boston Properties BXP $0.68 $0.50 $0.56 2.6%
Citigroup C $0.54 $0.00 $0.04 3.6%
Comerica CMA $0.66 $0.05 $0.18 1.8%
Capital One COF $0.38 $0.05 $0.36 3.6%
First Horizon National FHN $0.43 $0.00 $0.04 1.5%
Fifth Third Bancorp FITB $0.44 $0.01 $0.08 2.6%
Goldman Sachs GS $0.35 $0.35 $1.49 3.8%
Huntington Bancshares HBAN $0.27 $0.01 $0.04 2.4%
Hartford Financial Services HIG $0.53 $0.05 $0.31 5.0%
Host Hotels & Resorts HST $0.40 $0.01 $0.11 2.8%
JP Morgan Chase JPM $0.38 $0.05 $0.38 3.8%
KeyCorp KEY $0.38 $0.01 $0.03 1.6%
Kimco Realty KIM $0.44 $0.16 $0.16 3.8%
Legg Mason LM $0.24 $0.04 $0.16 2.0%
Lincoln National LNC $0.42 $0.01 $0.31 5.0%
Marshall & Ilsley MI $0.32 $0.01 $0.01 0.1%
Morgan Stanley MS $0.27 $0.05 $0.26 4.0%
ProLogis PLD $0.52 $0.15 $0.10 3.2%
PNC Financial PNC $0.66 $0.10 $0.49 3.7%
Regions Financial RF $0.38 $0.01 $0.03 1.5%
Simon Property Group SPG $0.90 $0.60 $0.80 3.3%
SunTrust Banks STI $0.77 $0.01 $0.07 1.0%
State Street STT $0.24 $0.01 $0.31 3.2%
U.S. Bancorp USB $0.43 $0.05 $0.18 3.2%
Vornado Realty Trust VNO $0.95 $0.65 $0.67 3.1%
Wells Fargo WFC $0.34 $0.05 $0.24 3.7%
XL Group XL $0.50 $0.10 $0.20 3.6%
Zions Bancorporation ZION $0.43 $0.01 $0.04 0.7%

Posted by on November 4th, 2010 at 11:29 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.