These 3%-5% Bank Yields Are a Steal

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Is it time for us contrarians to “buy the dip” in bank stocks?

We’re drowning in big bank-scare headlines. Silicon Valley Bank (SIVB) knuckled under in days, Signature Bank (SBNY) wasn’t too far behind, and across the pond, Credit Suisse (CS) needed a buyout bailout from rival UBS (UBS).

The next bank run, however, won’t be with the big boys. Too big to fail, baby. Here, we’ll find not only government help but also secure yields of up to 5.1%—trading at a discount, no less.

Why the big guys? Well let me show you. Last week, my software firm received this email from one of our vendors:

“Brett, Just wanted to give you our new banking details.

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“Don’t Fight the Fed” was chapter 4 in investing wizard Martin Zweig’s legendary book Winning on Wall Street. He devoted 40 thoughtful pages to teach readers why they should “go with the flow” with respect to the Fed’s trend at any given moment.

As we recently heard from Fed Chair Jay Powell himself, the Fed is fixated on tapering. That is going to send a select group of dividend stocks to the moon.

I’m talking about “Fed-driven” price gains of 136% here—and 161% dividend hikes, too. (Those numbers aren’t pulled from the air; they’re exactly what was delivered by one of the three overlooked regional-bank stocks we’ll discuss below.… Read more

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