NYCB (New York Bank Corp)?NYCB has been recommended to me as a great place for dividend return. Anyone's educated thoughts? | |
NYCB (New York Bank Corp)?NYCB has been recommended to me as a great place for dividend return. Anyone's educated thoughts? | |
You could choose a lot worse stock for dividends
this choice (especially since it is an American financial institution) passes a test that I have when looking at any company when I am thinking of buying it for a long term dividend purchase....and that is "How did it perform during the financial crisis of 2008-2009
here is the chart
http://bigcharts.marketwatch.com/kaavio....
As you can see the stock price fell like all the others losing about 50% of its share value.
You can see it recovered only to fall again and now is rising again....so this stock is a very volatile hummer....a little too volatile for my taste as gains made by accumulating the dividends could be lost by a fall in share price,
however, there is a PLUS side to its dividend....it did not fall during the 2008-2009 crisis...it stayed the same at $0.25/share/quarter
http://ir.mynycb.com/divs.aspx?IID=10241...
try the same test on Bank of America [BAC] (still no recovery) or JP Morgan [JPM] where the quarterly dividend dropped from $0.38 to $0.05 over this time period and then took almost 2 years to reinstate a dividend of the same magnitude.
US financial institutions are not my favourite places to look for long term investment.
NYCB looks ok as it passes the dividend test....however the volatility in the share price makes me nervous as the gains of the dividends could be lost in a drop in share price.
The best of both worlds would be a solid stock like Coca Cola [KO]....share price very solid and rising...dividends solid and rising too.
http://web.tmxmoney.com/charting.php?qm_...
hover your cursor over the green "D" in the above chart to see the dividend. The drop in dividend in the last year is simply because the stock went through a 2:1 stock split (orange "S") which if you owned the stock prior to the split changed nothing to the overall dividend return,
New York Community Bancorp, Inc.
NYSE: NYCB - Aug 6 9:41am ET
15.32+0.07 (0.46%)
I bet that I can pick out the two people on its Board that are Mafia. Buying small banks around NYC means you buy Mafia-controlled businesses...