Bank Dividends Make a Comeback in 2011
By Stephen Grocer
Investing in bank stocks was risky business in 2011. Shares of the nation’s banks were hammered as the economy continued to struggled and concerns about new regulations weighed on them.
But there was a bit of good news.
More banks and thrifts increased or initiated dividends in 2011 than in the previous two years combined, according to a report from SNL Financial. In all 123 banks and thrifts raised or initiated dividends last year, a 36% increase from 2010 and a 68% jump from last year. (Banks that took handouts from the government during the financial crisis generally were barred from paying robust dividends.)
Meanwhile, the number of banks slashing or suspending their dividend fell last year. Only 16 banks cut their dividend lat year, while seven suspended it. In 2010, 31 institutions lowered their dividend and 25 suspended it.
The fourth quarter was particularly active with 39 banks and thrifts raising or launching dividends. The largest dividend increase in the quarter belonged to PacWest Bancorp. The bank approved a quarterly cash dividend of 18 cents a share in November, up from a penny.
Here’s the list of banks which upped their dividends in the fourth quarter of 2011.
Here’s the list of banks that cut dividend in fourth quarter.
And suspended their dividends.
