Dividend payers deserve a berth in any long-term stock portfolio. But seemingly attractive dividend yields are not always as fetching as they may appear. Let's see which companies in the banking industry offer the most promising dividends. When hunting for promising dividend payers, unsophisticated investors will often just look for the highest yields they can find. But extremely steep dividend yields can be precarious, and even solid ones are vulnerable to dividend cuts.
I usually like to look at long-term dividend growth rates, but the banking industry has suffered so much upheaval in recent years that those growth rates are negative, and sharply so, for many big banks. The industry seems to be getting its act together, though, and many dividends are rising. I've compiled some of the major dividend-paying players in the banking industry, ranked according to their dividend yields: BB&T (BBT), PNC Financial Services (PNC), US Bancorp (USB), Wells Fargo (WFC) and KeyCorp (KEY).
Source: Motley Fool
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Most Promising Dividends in Big Banks
Posted by D4L | Tuesday, July 12, 2011 | ArticleLinks | 1 comments »________________________________________________________________
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I actually like the big 5 canadian banks, which did not cut distributions during the financial crisis. Now they are also starting to increase dividends as well and yield a very respectable dividend yield.