Take a look at share price over any time period. 1 year, 3 year, 5 year, it doesn't matter, the dividend does not even cover the falling share price. Also, the dividend is approximately 85% of earnings and that is not even sustainable. No company can maintain a dividend greater than 50% of earnings so it is easy to see a dividend cut coming here. The 5% that some people here are talking about is an illusion. Look at your shares, with reinvested dividends, over any time period less than 10 years, and pbct is a loser. The conference call was full of contradictions, Are we growing or buying back? Turns out there is a growth story for investors but we are buying back to vest options for the people in the board room. This company is dead.
Talk for yourself! BTW the dividend is not my own money or for the ones that bought this stock when it was way down. I bought this stock for the first time at $10.80 so what’s your point? Apparently you’re short, you sold at a loss, selling it to me ;-) and now you’re waiting to buy back telling everyone to sell hoping it goes below to what you originally sold. After looking at the financial and the going forward future P/E I’ll be buying much more even at this price level, because the past 1 year, 3 years, 5 years were pretty bad for any bank, it doesn't mean anything now. I believe PBCT will do good in the near future.
The dividend in nearly 100% of earnings. Dividends that exceed 50% of earnings do not leave enough capital in the business. In every case those dividends are reduced or the stock price erodes in accordance with declining capital. The last 1, 3 and 5 years have not been bad for banks as you suggest. Quite the contrary, many banks have done quite well. You are drinking PBCT Kool-Ade and it will end up costing you money.
That could be said of every stock that pays a dividend. Yes, it's your money, but the company is giving some of it back to you in the form of a dividend. What other startling discoveries have you made?