NYB trading the last few weeks indicates that they are talking to some other institution about a transaction. Even though the regulators haven't lifted the SIFI threshold they be allowing NYB to make an acquisition and still keep there present dividend based on strength of their balance sheet.
Could have been anticipation of Mar 11 report of stress test results on the larger "Systemically Significant" banks freeing up some of them to buy back shares or increase dividends. Some NYCB shareholders may have been considering selling NYCB to buy in to the larger banks.
If you owned it since 2004 as I have you can also look at it reducing the $1$ per share dividend from your cost basis for every year youve owned it.
For example, if you bought 1000 shares at 16 in 2004, your real out of pocket price is $4 without any capital gains tax if you are in a taxable account.
It's not just any dividend, it's a safe 6% dividend. Where else do you get safe income at that rate, plus you also have the opportunity for good upside in the stock price if growth picks up and the interest rate curve steepens? It's taking forever but if you get paid 6% to wait, it's a great stock to just forget about, preferably in a non-taxable account.
bayman great trdes, sadely the market moved in options be4 i could get positioned. and tbh badwolf, when in doubt like that, i say do both if you find the right day and premium. Like if i bought at 15 lets say as an example 400 share u could do 3 and 1 splits, or 2/2 2 to sell at 17, 2 for 20 same maturity, i prefer to do 1 contract per maturity tho, i dont like messing with the same chain. i wanted to sell puts on it but seems like jus having dividend would outdo the cash, but depends on prices too, ohhh missed the boat
Heck...i like the dividend...if the bank is acquired...i'd be getting a much lower dividend-of course i'd also be getting a premium in the share price...i'd guess maybe $22.00 a share is my target....and with the Federal Reserve slated to begin raising rates later this year almost certain...earnings at this bank would expand markedly so a takeover could very well be in the cards sooner-rather-than-later!
i personally disagree with reinvesting, it worked in past, but so much alg trading basically charges u for it now. Look at stock on x-div day, literlly always hit for vlue of div instantly, while drip buy days tend to be high of short term trends. I choose to collect all div and invest into current opportonity of the moment, with the thought of building income always at the core