New York Community Bank - 7.7% dividend

[MichealKnight]

I get suspicious when I see divs that high but I wanted to see if anyone here has looked at it.

7.2 P/E

I will admit. The *one* set of talking heads I ike to watch is the daily show called "Halftime Report" on CNBC. I feel the moderator is great and I feel he bluntly holds people accountable on their recommendations - good or bad. One panel member is a "Jenny Harrington" - she says her discipline is clients who want 5% dividend income - while trying to preserve capital and add modest capital gains.

She has suggested it multiple times over the year - when it was at $11, $12 - - - I bought it at $12.....I SOLD it at $10.75(yeah, sometimes I don't like losses). now it's at $8.70 setting a new 52 week low. She claims she talks to management, they assure her all is well. She says that a merger with Flagstar has gone slow, and that's the drag on the stock. I'm tempted to get in.........BUT as usual, too skeptical for my own good I wonder....if its so low risk, why isn't everyone getting in for a 7.7% dividend?

 

[njhowie]

A director bought 25,000 shares last week at $9.27.

The last insider purchase prior to that was 2 years ago at $10.20.

If you're looking for the income stream from the dividend, there are a number of bank preferreds paying in that ballpark. The preferred dividends are secure with strong banks because in order to possibly touch/skip payment, common dividends would first have to be eliminated...and that rarely happens with strong banks.

Looking at the long term chart for NYCB, it's spent most of the past 20 years between $8 and $12.

 

[Freedom56]

I would avoid banks stocks now. The yield curve will invert which will be painful for many banks. The golden rule is to buy banks about 3 months before the last rate hike or if the Fed changes course and starts cutting rates.