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Contrarian Play: 10 Best Of The Best Dividend Champion Banks

Published Wed, 09 Sep 2020 10:47:39 -0400 on Seeking Alpha

Seeking AlphaDividend StrategyContrarian Play: 10 Best Of The Best Dividend Champion BanksSep. 9, 2020 10:47 AM ET|| Includes: AROW, BMRC, CBU, CFR, FLIC, FMCB, OZK, PBCT, SBSI, SYBTby: Richard J. ParsonsRichard J. Parsons Banks10 X Risk Management Llc.cls-1{fill:#024999;}SummaryThe market may be rotating from Growth to Value.
If so, banks may gain back the ground lost in 2020.
A prudent way to invest in banks today is to stick with high quality.
Here are 10 Best of the Best Dividend Champion banks.
The headline risk with banks is the economy.
Contrarian Play: Buy Bank Stocks
In my last post, I made the case for Dividend Champion banks as a contrarian value play.
If the market is rotating from Growth to Value, likely bank investors will be beneficiaries. However, given the enormous uncertainties facing investors today, now is not the time to go far out on the risk-return spectrum.
Bank investors have historically been rewarded by sticking with high-quality banks with a proven history of generating superior risk-adjusted returns.
Likely the future will resemble the past.
The purpose of this post is to identify the Top 10 Dividend Champion banks for long-term investors in September 2020. These banks are not only Dividend Champions, but banks with long histories of generating returns that exceed cost of capital.
Top 10 Dividend Champion Banks
The Top 10 Best of the Best Dividend Champions are:
Table 1
As of Aug. 31, 2020
Assets $B.
Mkt Cap $B.
(Nasdaq: AROW)
Arrow Financial Corp.
$ 3.5
$ 0.4
(Nasdaq: BMRC)
Bank of Marin Bancorp
$ 3.2
$ 0.4
Commerce Bancshares Inc.
$ 30.5
$ 6.7
Community Bank System Inc.
$ 13.4
$ 3.2
Cullen/Frost Bankers Inc.
$ 39.4
$ 4.4
(Nasdaq: FLIC)
First of Long Island Corp.
$ 4.2
$ 0.4
... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
PEOPLE'S UNITED FINANCIAL 16.06   12.3 1.31 0.71 4.52
SOUTHSIDE BANCSHARES 34.67   15.8 2.19 1.24 3.68
CULLEN/FROST BANKERS 90.05   12.7 7.11 2.84 3.20
ARROW FINANCIAL 35.31   14.4 2.46 1.04 3.09
THE FIRST OF LONG ISLAND 23.75   0.0 0.00 0.68 2.97
S.Y. BANCORP 38.26   14.5 2.64 1.04 2.78
COMMUNITY BANK SYSTEM 66.00   20.2 3.27 1.64 2.40
BANK OF MARIN BANCORP 43.23   0.0 0.00 0.84 2.02


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