Select bank stocks may be cheap, but why settle for 2% to 3% yields?
Let’s really bang on the bargain bin and for dividends between 8.3% and 9.4%. These yields are available thanks to the current banking fears.
Fortunately, these payouts are more secure than vanilla investors appreciate. Hence, the dividend deal.
A Better Way to Play Banks
I wrote a few weeks ago about how mainstream investors are trying to time a bottom in banks.
Fair enough. Banks are extremely cheap right now by a well-known measure of long-term value: CAPE (cyclically adjusted price-to-earnings), which is the price divided not by the past year of earnings, but the past 10 years.… Read more
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