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Banks and Dividends

Recs

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November 05, 2010 – Comments (1)

Looks like they are going to start letting the healthier banks start upping their dividends:

http://www.reuters.com/article/idUSTRE6A35V120101105

I would be curious to see the list of those that they see as qualifying.

Jason

1 Comments – Post Your Own

#1) On November 05, 2010 at 2:22 PM, rd80 (98.66) wrote:

The linked Reuters piece and other reports I've seen indicate qualifying will largely be defined as meeting the Basel III capital ratio requirements and any additional capital ratio requirements imposed by Dodd-Frank.

At this point, I think all of the big four banks (C, BAC, JPM and WFC) meet those standards.

I suspect that any bank that still has TARP preferred outstanding will be restricted.

Best guess is JPM will be the first to announce a divvy followed closely by WFC.  C still has common and preferred held by the gov't and BAC is still learning how much trash it bought with the Countrywide buy, so my guess is those two will take a big longer to start payouts.

Disclosure:  Long WFC

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