US Bancorp (USB)

ErnieKo (53.60) Submitted: 12/26/07 5:34 PM : Start Price: $30.65 USB Score: 30.49

One of the few banks that has weathered the subprime lending fiasco without much of a hit -- it's off from a 2007 high of 36.84 to a low of 29.09, and now back up to ~ 33. Its 5.2% dividend is attractive, at a 59% payout ratio.
Morningstar characterizes it as "one of the most profitable banks we cover." Management's stated growth goals are 10% in EPS and 20% ROE, annually, which they've done historically. Only apparent risk is that 17% of their credit business is in credit cards + home equity loans, both of which will suffer if we get into a signifcant recessive period.

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