Published Wed, 24 Jan 2018 13:26:27 -0500 on Seeking Alpha
New York Community Bancorp (NYCB) offers a dividend yield of 4.88%, the highest of any of the 74 banks currently in the KBW Banking and Regional Banking Indexes, and trades at a significant price to tangible book value (P/TBV) discount to the group. Against that backdrop, the stock attracts considerable attention as a high-yield value play.
Moreover, recent corporate tax cuts reduce risks the bank will be forced to reduce its dividend while the rising probability for legislative changes to rules governing systemically important financial institutions (SIFI) could aid the bank in resuming loan growth this year.
However, New York Community’s hefty exposure to multifamily residential home lending and limited exposure to commercial and industrial (C&I) loans limits its leverage to rising short term interest rates. Meanwhile, the bank’s high loan-to-deposit ratio and regional competition for deposits in the northeast US mean it’s likely to see a higher deposit beta than most regionals in 2018.
New York Community is a high-yield value trap, likely to lag the broader market and its regional banking peers in 2018 just as it did last year.
Focus on Multifamily in New York State As explained in “When Rates Rise, Buy Regional Banks But Be Selective” the key to separating the haves from the have-nots in the regional banking industry is to examine a bank’s balance sheet and focus on two fundamentals: Asset Sensitivity and Deposit Beta.
... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|NEW YORK COMM BANCORP||13.14||17.1||0.77||0.68||5.31|
Older articles featuring New York Comm Bancorp (NYCB):New York Community Bank: This 5.8% Yielder's Catalyst Has Arrived
New York Community Bancorp: Multiple Margin Headwinds, Overvaluation, Dividends At Risk
Last Chance To Pick Up This 5.3% Yielder On The Cheap
Buy This 4% Yielding Bank Stock
'Safer' Dividend Russell 1000 Dogs Chase CoreCivic Net Gains, Per Analyst September Targets
'Safer' Dividend S&P SmallCap 400 Dogs Paced By CoreCivic Gains And Yield In September
NYCB Stock: Receive a High Dividend Yield from This Regional Bank
S&P MidCap 400 'Safer' Dividend Dogs Chase HNI Corp. August One-Year Gains
S&P MidCap 400 'Safer' Dividend Dogs Led By CoreCivic, Chico's & Brinker July Gains
S&P MidCap 400 'Safer' Dividend Dog Gains Led By CoreCivic, F.N.B. & Chico's In May/June