In a low rate environment finding investments with high yields is rare. Even more rare is finding a set of bank stocks with high dividend yields.
I used CompleteBankData on the Bloomberg (APPS BANKS <GO>) to find a list of the highest yielding bank stocks with more than $1b in assets and yielding more than 4.4%. The list of matching banks are shown below.
It should be no surprise that New York Community Bancorp is the highest ranked stock. The bank has built a reputation as favorite for dividend investors.
All of the banks on the list have low Texas Ratios. The Texas Ratio is a short hand risk rating, the lower the Texas Ratio the better. Bank with Texas Ratios below 20% are considered to have a very low probability of issues within the next few years.
One additional item worth highlighting is that this list of high yielding banks all have relatively strong returns on equity. The bank with the lowest return on equity is Northwest Savings Bank, a recent mutual conversion.
For investors with an appetite for dividends there is probably a stock or two in the above list that’d make a great addition to your portfolio.
Disclosure: No positions