Say what you will, but a 7.7% dividend, in this business, in this economy is unsustainable.Everyone flocked to C when it dropped like a rock, for the dividend, everyone flocked to BAC when it dropped like a rock, for the dividend.The dividend is unsustainable. Period.JMHO.
One good thing is when it get's to $20 it will only have a 5% dividend...... if they don't raise the payout.
I guess that means it's been unsustainable since 2004, even through the 08 financial crisis. By my calculation that means it'll be unsustainable for another 8 years or so.
Please provide your support. NYB's risk characteristics are no where near C or BAC or any other larger financial institution in this country.I agree the payout ratio is high, but the dividend is sustainable. The only reason I would think to cut the dividend is if an interesting acquisition opportunity comes in and it would be a way to preserve capital by not issuing shares at depressed prices.