3 Small Bank Stocks to Buy for Income

In the past couple of weeks we have seen volatility come back to the stock market. The shock was particularly strong for those who are relying on equity markets to provide desperately needed income from their investments. If you’re looking for calmer waters that can provide reliable growing streams of dividend income, consider the small regional and community bank stocks. Now that the more severe economic distortions of the real estate and credit crisis are behind us, banks are seeing improvements in their balance sheets and loan portfolios.

Most small banks have rebuilt their capital levels and are now using excess capital to reward shareholders with dividends and buybacks. As the economy continues to slowly recover, smaller bank stocks should be dividend growth leaders. As a bonus they usually aren’t affected by the news-driven distortions that can roil the broad market: Banc of California (BANC), Westfield Financial (WFD) and Oritani Financial (ORIT).

Source: InvestorPlace

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