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The "big 4" bank stocks, anyone buying?
07-05-2010, 07:24 PM
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#1
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Full time employment: Posting here.
Join Date: Mar 2010
Posts: 889
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The "big 4" bank stocks, anyone buying?
Anyone buying JPM, BAC, C, or/and WFC?
Buffett bought a ton of WFC during the last year(s). I assume he knows what he is doing. I am tempted to buy some bank stocks and sit on them. They are all too big to fail and should be recovered in ten years or sooner. The financial over haul bill looked weak the last time I checked. Did it pass? Anyway I think the "threat" of financial reform is over with.
WFC and JPM look the most appealing to me. Does the government still own like 80% of C?
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07-06-2010, 09:13 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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I'm still holding my KBE bank index fund. I figured most holdings were too big to fail and they paid decent dividends when I bought it (circa July 2008). It turns out they were too big to fail but not too big to dilute the common stock.
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Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (8, 13, and 15).
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07-06-2010, 09:43 AM
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#3
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Recycles dryer sheets
Join Date: Aug 2009
Posts: 348
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i have bac, c, and sbib and keep adding on the dips
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I am FIRE'd... :)
contract on the house, bought an RV and now traveling across America
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07-07-2010, 08:16 PM
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#4
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Recycles dryer sheets
Join Date: Apr 2010
Posts: 50
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Why not load up On Canadian banks? RY looks cheap now. (I own alot) Fairly safe...CAN $ might rally against USD...Nice dividends...protected market.
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07-08-2010, 06:22 AM
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#5
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,362
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Agreed. I've been doing well with TD and BNS.
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I thought growing old would take longer.
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07-08-2010, 08:55 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
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If you extend the "big 4" to the "big 7", RBC will be among them.
Royal Bank joins world's top 10
Disclaimer: I own shares in 5 of the Canadian "big 6". They are among my best dividend earners.
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07-08-2010, 09:45 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Posts: 17,244
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Quote:
Originally Posted by Meadbh
If you extend the "big 4" to the "big 7", RBC will be among them.
Royal Bank joins world's top 10
Disclaimer: I own shares in 5 of the Canadian "big 6". They are among my best dividend earners.
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Decided to take a look... this is not the ranking of bank size... but how much assets they manage for other people...
They might be big in total assets... but this is not that ranking... you have to have a trillion or so of total assets to get up there...
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07-08-2010, 09:53 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Posts: 17,244
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Did a bit of looking... this was Sep 09...
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07-08-2010, 07:03 PM
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#9
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,362
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BNS currently pays a 4% dividend yield, RY pays 3.9%, and TD pays 3.5%.
These are big, very well managed banks, and I consider them very conservative investments. What's not to like?
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I thought growing old would take longer.
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07-08-2010, 08:46 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Nov 2005
Location: North of Montana
Posts: 2,769
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BMO is about 4.7, measured in $C.
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There are two kinds of people in the world: those who can extrapolate conclusions from insufficient data and ..
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07-09-2010, 05:47 AM
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#11
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,362
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And seems to be reliable, although it's a smaller bank than the others mentioned. In any case, there's only so much I'm willing to put into any sector, and Canadian banks are already at that point for me. Good point, though.
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I thought growing old would take longer.
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07-25-2010, 06:06 AM
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#12
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Confused about dryer sheets
Join Date: Jul 2010
Location: Honolulu
Posts: 6
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Just an opinion. I am in the process of researching many stocks right now....However,
I bought C on the pull backs and I believe it will be in good shape YTD up 17.8%.
Considering either BAC or JPM: Not sure but I am waiting on another pull back.
S & P has BAC as a "strong buy".
JPM looks great with 14.5% profit margin, sales are up 16.8% and PE 11.6
I haven't researched SBIB or WFC or any of the Canadian banks... yet
Good luck!
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07-25-2010, 06:58 PM
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#13
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Full time employment: Posting here.
Join Date: Mar 2010
Posts: 889
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I have been buying WFC, 50 shares last month and probably another 50 this pay check. I like JPM as well but I do not think they will return cash to shareholders with dividends, but instead with stock buybacks. I think that WFC is much more likely to return to the dividend policies that banks have been known for. I invest in stocks specifically for dividend income.
I like the WFC strategy of cross-selling and I also think they got a great deal out of wachovia, doubling their size. I think the two clear winners from the recent debacle were WFC and JPM.
John Stumpf has said that he wants to restore the dividend and I'm guessing that will happen in 2011.
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07-25-2010, 07:18 PM
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#14
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Recycles dryer sheets
Join Date: Aug 2009
Posts: 348
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well ge jumped their div 20 percent so others have to either follow along or get left behind...
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I am FIRE'd... :)
contract on the house, bought an RV and now traveling across America
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07-25-2010, 07:24 PM
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#15
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Full time employment: Posting here.
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Quote:
Originally Posted by heyduke
well ge jumped their div 20 percent so others have to either follow along or get left behind...
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Yeah, it is like they are playing a game of chicken. I have felt all along that once one of them starts raising the others will have to follow to some extent.
I was surprised to see GE raise. I guess it pays to have an industrial conglomerate side business to compliment their bank company.
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07-28-2010, 07:13 AM
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#16
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Thinks s/he gets paid by the post
Join Date: Feb 2004
Location: Mid Hudson Valley
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In a panamax down by the river.
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07-30-2010, 06:49 PM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Quote:
Originally Posted by ESRwannabe
Yeah, it is like they are playing a game of chicken. I have felt all along that once one of them starts raising the others will have to follow to some extent.
I was surprised to see GE raise. I guess it pays to have an industrial conglomerate side business to compliment their bank company.
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I guess you could say GE raised their dividend, I'd call it a small step toward getting back to their .31 dividend, at $.12 it is still below their dividend at the beginning of the century.
I own WFC and am always looking at JPM, I wish I knew more about the foreign banks they look appealing.. Still wouldn't buy Citi, after reading the Big Short, Too Big to Fail, and House of Cards, I am pretty sure that Citi is where all the dumb bankers go to work (obviously there are exceptions and Rubin is no dummy but time and again Citi was too late and too stupid.)
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07-31-2010, 07:23 AM
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#18
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Recycles dryer sheets
Join Date: Apr 2009
Posts: 206
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Quote:
Originally Posted by survivor1998
S & P has BAC as a "strong buy".
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I'm holding a bunch of BAC also. I view it as a play on the general economy recovering. My biggest concern is that everyone thinks BAC is a buy, and the contrarian in me has taken pause.
Quote:
Originally Posted by clifp
I guess you could say GE raised their dividend, I'd call it a small step toward getting back to their .31 dividend, at $.12 it is still below their dividend at the beginning of the century.
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GE along with DOW, PFE, and most all of the financials stocks, taught me a valuable lesson in 2008. My feeling used to be that I could shrug off any market decline as long as my dividend income continued. Then the market decline of 2008 came along and the dividend cuts were as prevalent as the share price declines. And the cuts weren’t only due to dire financial straights as was the case with most of the financials - DOW and PFE cut the dividends in order to facilitate acquisitions. I found that to be particularly offensive.
One thing I always keep in mind regarding dividend cuts: Don’t ever trust a company / board and CEO that has cut its dividend in the past. Dividend cuts are just like adultery, much easier to do the second time.
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08-06-2010, 11:14 AM
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#19
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Recycles dryer sheets
Join Date: Aug 2009
Posts: 348
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...added 1k of sbib here at 4.89
__________________
I am FIRE'd... :)
contract on the house, bought an RV and now traveling across America
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08-06-2010, 02:04 PM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2006
Posts: 7,733
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Quote:
Originally Posted by Snidely Whiplash
GE along with DOW, PFE, and most all of the financials stocks, taught me a valuable lesson in 2008. My feeling used to be that I could shrug off any market decline as long as my dividend income continued. Then the market decline of 2008 came along and the dividend cuts were as prevalent as the share price declines. And the cuts weren’t only due to dire financial straights as was the case with most of the financials - DOW and PFE cut the dividends in order to facilitate acquisitions. I found that to be particularly offensive.
One thing I always keep in mind regarding dividend cuts: Don’t ever trust a company / board and CEO that has cut its dividend in the past. Dividend cuts are just like adultery, much easier to do the second time.
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I am with you. The day to day variation didn't bother me as long as the dividends remain. I posted on the forum several times one of my favorite banks BB&T wouldn't cut dividends cause it had paid them since the 1890s, had only cut them once by a penny during the great depression and had raised them for almost 30 years. Sure enough it slashed them from .46 to .10. I saw my income slashed as bad as the stock prices, and unlike share prices which have staged a decent recovery my dividend income hasn't.
I could understand cuts when the bank regulators said raise capital ratios NOW, but the Pfizer was particular offensive. I am going to steal your dividend cuts are like adultery line and pass it on the editor of the M* dividend newsletter.
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