Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
The "big 4" bank stocks, anyone buying?
Old 07-05-2010, 07:24 PM   #1
Recycles dryer sheets
ESRwannabe's Avatar
 
Join Date: Mar 2010
Posts: 250
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?
__________________

__________________
ESRwannabe is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-06-2010, 09:13 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 5,410
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.
__________________

__________________
Recently retired at 33. Loving it so far! Wife is still working for ~1 year. I'm secretly just a stay at home dad with 3 kids (1, 7, and 8) but don't tell anyone.

Money is the Root of All Good.
FUEGO is offline   Reply With Quote
Old 07-06-2010, 09:43 AM   #3
Recycles dryer sheets
heyduke's Avatar
 
Join Date: Aug 2009
Posts: 347
i have bac, c, and sbib and keep adding on the dips
__________________
I am FIRE'd... :)
contract on the house, bought an RV and now traveling across America
heyduke is offline   Reply With Quote
Old 07-07-2010, 08:16 PM   #4
Recycles dryer sheets
 
Join Date: Apr 2010
Posts: 50
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.
__________________
Eder is offline   Reply With Quote
Old 07-08-2010, 06:22 AM   #5
Thinks s/he gets paid by the post
braumeister's Avatar
 
Join Date: Feb 2010
Posts: 3,170
Agreed. I've been doing well with TD and BNS.
__________________
braumeister is offline   Reply With Quote
Old 07-08-2010, 08:55 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Meadbh's Avatar
 
Join Date: Jul 2006
Posts: 6,881
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.
__________________
For more about me, see my profile.
Meadbh is offline   Reply With Quote
Old 07-08-2010, 09:45 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 8,701
Quote:
Originally Posted by Meadbh View Post
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.

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...
__________________
Texas Proud is offline   Reply With Quote
Old 07-08-2010, 09:53 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 8,701
Did a bit of looking... this was Sep 09...



__________________
Texas Proud is offline   Reply With Quote
Old 07-08-2010, 07:03 PM   #9
Thinks s/he gets paid by the post
braumeister's Avatar
 
Join Date: Feb 2010
Posts: 3,170
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?
__________________
braumeister is offline   Reply With Quote
Old 07-08-2010, 08:46 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Nov 2005
Location: North of Montana
Posts: 2,752
BMO is about 4.7, measured in $C.
__________________
There are two kinds of people in the world: those who can extrapolate conclusions from insufficient data and ..
kumquat is offline   Reply With Quote
Old 07-09-2010, 05:47 AM   #11
Thinks s/he gets paid by the post
braumeister's Avatar
 
Join Date: Feb 2010
Posts: 3,170
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.
__________________
braumeister is offline   Reply With Quote
Old 07-25-2010, 06:06 AM   #12
Confused about dryer sheets
 
Join Date: Jul 2010
Location: Honolulu
Posts: 6
Send a message via AIM to survivor1998
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!
__________________
survivor1998 is offline   Reply With Quote
Old 07-25-2010, 06:58 PM   #13
Recycles dryer sheets
ESRwannabe's Avatar
 
Join Date: Mar 2010
Posts: 250
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.
__________________
ESRwannabe is offline   Reply With Quote
Old 07-25-2010, 07:18 PM   #14
Recycles dryer sheets
heyduke's Avatar
 
Join Date: Aug 2009
Posts: 347
well ge jumped their div 20 percent so others have to either follow along or get left behind...
__________________
I am FIRE'd... :)
contract on the house, bought an RV and now traveling across America
heyduke is offline   Reply With Quote
Old 07-25-2010, 07:24 PM   #15
Recycles dryer sheets
ESRwannabe's Avatar
 
Join Date: Mar 2010
Posts: 250
Quote:
Originally Posted by heyduke View Post
well ge jumped their div 20 percent so others have to either follow along or get left behind...
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.
__________________
ESRwannabe is offline   Reply With Quote
Old 07-28-2010, 07:13 AM   #16
Thinks s/he gets paid by the post
BUM's Avatar
 
Join Date: Feb 2004
Location: 34N 78W
Posts: 1,756
Assuming things will get doomier and gloomier before getting prosperous and sunnier, I'm buying SKF
__________________
In a panamax down by the river.
BUM is offline   Reply With Quote
Old 07-30-2010, 06:49 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 6,674
Quote:
Originally Posted by ESRwannabe View Post
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.

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.)
__________________
clifp is offline   Reply With Quote
Old 07-31-2010, 07:23 AM   #18
Recycles dryer sheets
Snidely Whiplash's Avatar
 
Join Date: Apr 2009
Posts: 92
Quote:
Originally Posted by survivor1998 View Post
S & P has BAC as a "strong buy".
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 View Post
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.
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.
__________________
“What I tend to do when it comes to the business of being fit is not bother. I eat lots, and then I sit in a chair. The upside to this is that I have a happy family and many friends. The downside is that I wobble and wheeze extensively while going to the fridge for another chicken drumstick.” - Jeremy Clarkson
Snidely Whiplash is offline   Reply With Quote
Old 08-06-2010, 11:14 AM   #19
Recycles dryer sheets
heyduke's Avatar
 
Join Date: Aug 2009
Posts: 347
...added 1k of sbib here at 4.89
__________________
I am FIRE'd... :)
contract on the house, bought an RV and now traveling across America
heyduke is offline   Reply With Quote
Old 08-06-2010, 02:04 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 6,674
Quote:
Originally Posted by Snidely Whiplash View Post


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.
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.
__________________

__________________
clifp is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Schiller "Precarious State, Stocks fairly valued but could go down a lot" shotgunner FIRE Related Political Topics 9 07-15-2009 09:08 PM
Buying a larger home: "just enough" or "all the way" Lusitan Young Dreamers 36 03-20-2008 07:00 AM
"Bank error in your favor" .. so we decided to pull the plug .. but .... Alan FIRE and Money 4 11-18-2007 09:29 AM
Book report:  "1st National Bank of Dad" Nords Young Dreamers 9 03-21-2005 09:30 AM

 

 
All times are GMT -6. The time now is 01:06 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2014, vBulletin Solutions, Inc.

Early Retirement News right to your Email!

Stay up-to-date with all the latest news to your inbox!

unsusbcribe at anytime with one click

Close [X]