I don't see where Cramer said that. I watched his quick comment off the top of his head that NYCB could possibly cut their divi but nothing about what your comment said.
If you listened to the last quarterly report The CEO flatly stated that the bank was already geared up and employees in place to meet all requirements...That they talked every day with regulaters.. That they would protect the dividend by a larger deposit base etc
Im buying more today. I live in queens, know NYCB and the community very well. With this management over 50 would just mean larger cap gains, and divi growth on top of the 6.2 percent. This is how its going to happen. as am Ultra long term holder its clear the reason
they are waiting the deal is to get the big bang out of it. I dont think any bank is in a better position than nycb to cross over and win large. This is thier style , slow and deliberate, and top notch concerns for dividend GROWTH LONG TERM. I dont think of this as just in a holding pattern for the divi. Im infor dividend GROWTH and I have 20 years left about to wait it out before my kids get the nycb
But that risk has been known and responded to by the CEO several months ago. It doesn't make any sense that issue would cause a sudden drop at a certain time.
Statements like yours is EXACTLY why I will be buying more today. Bet this bank has it all figured out in advance and their actions will propel it to new heights. Too much fear over crossing the 50B mark. The time to buy is NOW.
Sentiment: Strong Buy
One of the weaknesses of NYCB was the low % of deposits which are a cheap source of funds(take a look at what you get at the bank) and they are addressing that as a priority - and they are performing on their promise.
The divi still represents a high % of their earnings - but in cash flow terms not terrible which tells me that we will not be getting an increase in the near term future. However the existing divi seems solid so it portends a
real return of 6 plus %.
I have owned this bank since the IPO. Always a steady dividend from a strong bank. Have added to my position many times. This is one you can sleep well with and not worry
With interest rates actually going down - it makes little sense that this fell so quickly. With a divi greater then 6% and what seems to me a safe divi why would our divi be up to over 6.5% because of the price fall. It has been painful but I have ridden it through. I already have a large stake that I increased during the break of some support levels so holding for long term. There was evidence that hedge funds were involved in this fall and in the past it can take months to recover.
NYCB's cost of funds is above average for the industry. They can lower that cost by buying a bank with a good depositor base. A good depositor base helps earnings by lowering costs. That might be part of what NYCB is looking for.
Yes it is. NYCB was dragged down because they were part of the crowd. Great time to be building/adding a position.
If your sentiment: is 'Sell' then I suggest you short sell all you can get . Please, please take my shares and sell them. For this to get to $15.00 would be a dream come true for me.
Maybe we need not actually be too cynical...these lower prices give us an unexpected accumulation opportunity....as this NYCB has been a very, very well run bank and when interest-rates actually do turn higher-for good...well then our earnings at the band will double or triple over the following 5-7 years....or less...and you'll see the Bank even increase it's dividend-finally....I think it has been $1.00 for 10-years or more...or?
CFO said on the last conference call that when NYB reached the 50B mark it would take at least two to three quarters for full regulatory filing requirements to come into affect. NYB may possibly reach 50B organically in the latter part of next year and then have extra time to meet regs. NYB will work to have an agreement in place with regulators to keep the dividend steady or they may be bought out by a bigger bank.
I just don't see them putting themselves in a position where they are forced to lower the dividend - its not going to happen!