This cookie is set by GDPR Cookie Consent plugin. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". The cookie is used to store the user consent for the cookies in the category "Analytics". These cookies ensure basic functionalities and security features of the website, anonymously. CNBC's Michael Bloom contributed reporting.Necessary cookies are absolutely essential for the website to function properly. In a report this week, Janney analyst Daniel Cardenas warned investors, "While current expectations do call for challenging conditions in 2H, we think investors should remain focused on companies with proven track records of performing well during tough times and that offer an attractive yield with a manageable payout ratio." Janney recommended Los Angeles-based Hanmi Financial, yielding 5.8% with an estimated 2024 payout ratio of 30.7% San Jose, California-based Heritage Commerce, 5.6% and 47.9% Northrim BanCorp in Alaska, 5.0% and 49.9% Premier Financial of Ohio, 6.7% and 55.1% and Valley National Bancorp of New Jersey, 4.7% and 35.2%. At the height of the Covid-19 pandemic in 2020, the ratio got as high as 58.4%. As weak as bank profits are expected to be this year and the next, Truist's dividend payout ratio is only estimated to rise to 51.4% in 2023 and 54% in 2024, according to Janney Montgomery Scott. To judge the safety of bank dividends, take a look at their dividend payout ratios, which measure the percentage of earnings paid out in dividends. The two-year Treasury note yields about 4.85%. As a group, the 93 banks in the index yield 3.6%, not far from the 10-year Treasury note yield of 3.83% as of Friday. The S & P 1500 Composite Regional Bank Index, for example, has rallied 10.3% in the past month, according to FactSet, and 6.6% in the past three months, but remains 22% lower so far in 2023. The banks' yields have fallen as the stocks have recovered some of their losses from earlier in the year. Comerica Bank in Dallas pays a dividend equivalent to a 5.5% yield, down from 7.9% in May. As of Friday, the bank's common stock still yields 7.1%, albeit down from 8.5% as recently as May. Take Cleveland-based Ke圜orp, for example. Similar-sounding commitments from other super regional banks on their recent second-quarter earnings calls reassured investors who may have doubted banks were able and willing to pay what are, in some cases, still sky-high dividends in the wake of the failures of Silicon Valley Bank and First Republic Bank earlier this year. This Wednesday, Rhode Island's Citizens Financial left its dividend unchanged at 42 cents a share, equal to a 5.4% yield, still above a two-year Treasury. of Charlotte, North Carolina, in late April kept its dividend unchanged at 52 cents a share, and today still yields a whopping 6.3%. Western Alliance Bancorporation of Phoenix left its dividend unchanged at 36 cents a share in May and yields 3%. After all, PacWest Bancorp in May slashed its quarterly payout to a nominal penny a share, down from 25 cents. Personal Loans for 670 Credit Score or Lowerīack in April and May, investors saw juicy yields on regional bank stocks, some paying twice the rate on the 10-year Treasury note but wondered how safe they were if earnings fell out of bed - or how low the stocks might trade. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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