With banks down a sharp 20%, 4 top div­i­dend stocks to buy

Financial Mirror (Cyprus) - - FRONT PAGE -

cap­i­tal­iza­tion, and it is a ubiq­ui­tous pres­ence in the United States.

The Mer­rill Lynch bro­ker­age arm has con­tin­ued to sup­ply the bank with out­stand­ing rev­enues and growth.

The com­pany pro­vides var­i­ous bank­ing and fi­nan­cial prod­ucts and ser­vices for in­di­vid­ual con­sumers, small and middle mar­ket busi­nesses, in­sti­tu­tional in­vestors, cor­po­ra­tions and gov­ern­ments in the United States and in­ter­na­tion­ally.

Op­er­at­ing 5,100 bank­ing cen­ters, 16,300 ATMs, call cen­ters, on­line and mo­bile bank­ing plat­forms, the com­pany con­tin­ues to open new mar­kets and ex­pand share, which Jef­feries feels it ex­cels in.

CEO Brian Moynihan has met nu­mer­ous times over the past year with Wall Street and many an­a­lysts came away feel­ing good about the over­all out­look for the bank. With the po­ten­tial for strong com­mer­cial lend­ing and credit card orig­i­na­tions, and trad­ing at 9.4 times 2016 es­ti­mated earn­ings, the stock makes good sense now. Deutsche Bank cites the bank’s good ex­pense man­age­ment, loan growth and the val­u­a­tion as pos­i­tives.

Bank of Amer­ica in­vestors re­ceive a 1.48% div­i­dend. The Deutsche Bank price tar­get for the stock is $17, and the Thom­son/First Call con­sen­sus tar­get is $17.45 The stock closed on Fri­day at $13.54. en­ti­ties, in­clud­ing cor­po­rate bank­ing, real es­tate fi­nance and as­set-based lend­ing; and wealth man­age­ment and as­set man­age­ment. With con­sis­tent earn­ings growth and a very pos­i­tive and grow­ing loan port­fo­lio, the com­pany is a pre­miere su­per-re­gional bank stock to own.

Wall Street an­a­lysts point to nu­mer­ous pos­i­tives, in­clud­ing the bank im­ple­ment­ing huge cost sav­ings plans. The bank is work­ing on up to $100 mil­lion of new sav­ings an­nounced last year, and it is also ap­plauded for out­stand­ing credit/risk man­age­ment and the lim­ited ex­po­sure to the cap­i­tal mar­kets re­lated ar­eas, while fo­cus­ing on tra­di­tional bank­ing.

Top an­a­lysts also cite the bank’s im­pres­sive Basel III com­mon equity tier 1 ra­tio of 10.0% for the fourth quar­ter of 2015, which well ex­ceeds the 8.5% level that they feel PNC needs to run a con­ser­va­tive but very prof­itable bank.

Share­hold­ers re­ceive a 2.43% div­i­dend. The Deutsche Bank price tar­get is $99, while the con­sen­sus tar­get is $97.10. Shares closed Fri­day at $87.30.

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