higher interest rates will eventually come in 1, 5 or 10 years. Think of it as a bond with upside.
If it's 10 years, the shares you buy today will be free.
If you are thinking 'total return' I think BAC is the better bet, even after you add in the NYCB dividend. However if you are an income investor, and not thinking of selling down the road then NYCB looks better. Everyone has different goals
I like NYCB much better than BAC. Been adding to NYCB the last few days. Big consistent dividend is the difference for me.
Good point. This may be motivating management to keep the dividend high. They may also sell off some recent acquisitions to reduce the size of the balance sheet. I hope someone questions management about future moves they can make to keep the dividend at the current level.
bought more shares of NYCb today at $14.73. I buy this stock for a steady dividend.
I added more this morning. ANY good news on Ebola will send this market UP.
Sentiment: Strong Buy
I have been a long time holder of this stock and added more shares yesterday at $14.66.
Sentiment: Strong Buy
the p/e multiple for NYCB is even higher than Wells fargo at this point. WFC reported $1.02 per share this quarter. NYCB about what, 27 cents? The p/e's are about 11 vs 14 with NYCB being higher, so Wells cheaper by that measure.
BAC just reported 42 cents per share for this quarter if exclude the DOJ settlement, which should be the last significant payout. So BAC share price and NYCB Shares are comparable, and BAC earning more per share, and RISING. So BAC cheaper by that measure.
Guess another drawback with NYCB is earnings per share not rising, at least not much.
BAC on track to earn about $2 per share per year in the not too distant futue. If you apply a 14 p/e multiple to that, which NYCB currently has, that would make BAC worth $28. Think two years from now that would be reasonable expectation.
I like NYCB. Like BAC more at this point, so bought more of that.
Thanks Okie....hopefully with BAC growth will lead to larger divi in the future. What would be the biggest drawback to owning NYCB in your opinion?
I own BAC BOH (bank of Hawaii - midiszed?, good dividend) NYCB and JPM. By far biggest position is BAC, and I listen to Bruce Berkowitz, Fairholme Fund, and his analysis says it is most undervalued at this point, most room to gain market value to fairly reflect its balance sheet. But I have NYCB in both my ROTH ira and my regular account, and with automatic dividend re-invest and really like the way the share count grows and compounds itself. It is good its share price is down because when the next div comes the reinvestment will buy more. Look at BOH maybe too, but I bought that a while ago at $47.
I want to take a position in a mid sized bank and have been looking at NYCB for several months now. Seems like the price is right and a very nice dividend. Thoughts? Not sure about the big banks at this point. Best of luck to you!!