2 Outperforming Regional Bank Dividend Stocks
Double Dividend Stocks | Jun 22, 2016 04:08AM ET
Looking for safe dividends? How about safe dividends with a little something extra, like price gains? We’ve found two regional bank dividend stocks, from different areas of the US, both of which have outperformed the S&P 500 over the past month, year, and year to date:
Stock Yards Bancorp Inc (NASDAQ:SYBT) is much larger outfit than Parke Bancorp Inc (NASDAQ:PKBK), and has a longer history. However, PKBK has the added attraction of being priced below Book Value. It also has a much lower P/E, and Price/Sales valuation:
Profiles:
SYBT: Stock Yards Bancorp, Inc. operates as the bank holding company for Stock Yards Bank & Trust Company that provides commercial and personal banking services in Louisville, Indianapolis, and Cincinnati. Its loan portfolio comprises commercial and industrial, real estate mortgage, construction and development, undeveloped land, and consumer loans; and originates and sells single-family residential mortgages.
It also offers securities brokerage services through an arrangement with a third party broker-dealer; and investment management, retirement planning, trust and estate administration, and financial planning services. As of 12/31/15, the company had 37 banking locations, including 28 full service banking locations in the Louisville metropolitan statistical area (MSA), 4 full service banking locations in the Indianapolis MSA, and 5 full service banking locations in the Cincinnati MSA. Stock Yards Bancorp, Inc. was founded in 1904 and is headquartered in Louisville, Kentucky.
PKBK: Parke Bank is a full service commercial bank, with an emphasis on providing personal and business financial services to individuals and small-sized businesses primarily in Gloucester, Atlantic and Cape May counties in New Jersey and Philadelphia and surrounding counties in Pennsylvania.
Parke Bank conducts business through a branch office in Northfield, New Jersey, two branch offices in Washington Township, New Jersey, a branch office in Galloway Township, New Jersey and a branch in center city Philadelphia. Dividends: Although these 2 stocks’ dividend yields aren’t high enough to add them to our High Dividend Stocks By Sectors Tables, they do offer much better yields than Treasuries, and they are both well-covered, with conservative Dividend Payout ratios.
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In addition to paying quarterly dividends, PKBK also occasionally pays out a huge kicker, in the form of a 10% stock dividend. PKBK declared a 10% stock dividend earlier in 2016, which was payable on May 18, 2016, to stockholders of record as of May 4, 2016. PKBK previously declared a 10% stock dividend in 2013. They’ve also increased their quarterly dividends 3 times since April 2015.
Neither of these two stocks currently has options available, but you can see income producing options trades for over 30 other stocks in our Covered Calls Table and also in our Cash Secured Puts Table.
Q1 2016 Data: PKBK had respectable gains in deposits and loans in Q1, in addition to increasing Shareholders Equity.
It also good income growth year over year in Q1 2016:
SYTB had good growth in Q1 2016 vs. Q1 2015
Financials: We usually look for ROA figures of over 1.00% when analyzing banks, so SYBT’s 1.40% is actually a lot more impressive than you’d think. (It had the highest ROA of the stocks which came up in our screen for this article).
Disclosure: Author owned shares of PKBK or SYBT, at the time of this writing.
Disclaimer: This article is intended for informational purposes only, and is not intended as investment advice. Please practice due diligence before investing any of the stocks listed in this article.
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