Shares of new Your Community bank are moving up thru the low $14.--'s area. With the advent of more costly short-term rates and the 10 & 30 year treasury notes---rising, hopefully earnings could actually begin to climb at this bank!
Brilliant....I agree with you completely. But I am content to wait and collect the 7+% yield, year after year, for many, many years. So, from my viewpoint, there is no rush on seeing big increases in the share price. Oh, maybe 5% per year stock price increase, on top of the 7% divy....that's would be a wonderful 12% per year gain. I much prefer this to, say, Apple, with stock price over $700 a year ago, now around $400. And a 3% divy. Then again, if AAPL raises its divy 10-15% per year, even without any stock price increase, the divy yield will exceed NYCB in a few years. NYCB won't be increasing its divy at all in the foreseeable future, I think.
If AApl inc its divy 10% a year it would take about 9 years for it to reach NYCB's current rate. Plus if you include all that extra income you lost by owning AAPL instead of NYCB, it probably would be about 12+ years before you break even. This of course does not take into account any movement in the stock price and any increase in NYCB dividend in the next 12 years.