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New York Community Bancorp Inc. Message Board

  • munchyman1 munchyman1 Apr 30, 2014 12:09 PM Flag

    Worry over the Div & SIFI (systematically important financial institution AKA Too Big To Fail)

    If and when NYCB crosses over the line of $50B in assetts(currently at $45B), they become a SIFI in the eyes of the government. They will be subjected to extra government oversight. One of these oversights will be that they will then have to get approval for their Div payout. Typically the Gov approves Divs in the 30-35% range. NYCB has been giving out 93% in Div. This all leads to alot of speculation on the Div shrinking and volatility in price.
    My opinion on this is, that while most times a company shrinks its Div because of financial weakness, NYCB could be forced to shrink its Div because of financial growth and strength! So, a Div decrease might lead to a short term drop in price, as high Div seekers flee, but not a drop in value!

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