In this article, we will discuss the 5 bank dividend stocks to buy in 2022. If you want to read our comprehensive analysis about bank dividend stocks, go directly to 10 Bank Dividend Stocks for 2022.
5. U.S. Bancorp (NYSE:USB)
Number of Hedge Fund Holders: 42
Dividend Yield: 3.21% (as of January 4)
U.S. Bancorp (NYSE:USB) is a US-based bank holding company which offers multiple financial services including cash management, lending and depository services, foreign exchange, and trust and investment management. The firm reported an EPS of $1.30 for the third quarter, which beat consensus estimates by $0.14.
U.S. Bancorp (NYSE:USB) declared a $0.46 per share dividend for the third quarter. The company has upped its quarterly dividend by 10% starting in Q3 2021, in the wake of the Federal Reserve’s bank stress tests.
On December 9, UBS analyst Erika Najarian initiated coverage of U.S. Bancorp (NYSE:USB) with a ‘Buy’ rating and a $70 price target. The analyst noted that the stock was “not so boring anymore”, given its approximately 300 basis points of ROTCE outperformance. The analyst cites the bank’s decision to use their share currency to buy Union Bank, and to double deposit market share in California as reasons for the ‘Buy’ rating.
As of the third quarter, 42 hedge funds were bullish on U.S. Bancorp (NYSE:USB) stock, showing a positive trend from last quarter where 41 hedge funds reported holding stakes in the company.
4. Citizens Financial Group, Inc. (NYSE:CFG)
Number of Hedge Fund Holders: 34
Dividend Yield: 3.17% (as of January 4)
Citizens Financial Group, Inc. (NYSE:CFG) is a commercial bank headquartered in Rhode Island. In October, the company reported quarterly dividend at $0.39 per share. As of the third quarter, 34 out of 867 elite hedge funds tracked by Insider Monkey reported ownership of stakes in Citizens Financial Group, Inc. (NYSE:CFG), with a combined value of $361.8 million. In contrast, 36 hedge funds held stakes worth $402.3 million in the company a quarter ago.
For the third quarter, Citizens Financial Group, Inc. (NYSE:CFG) reported an EPS of $1.22, which was above consensus estimates by $0.07. The company’s shares have soared 33.27% in the last 12 months.
On November 24, Morgan Stanley analyst Ken Zerbe resumed coverage of Citizens Financial Group, Inc. (NYSE:CFG) with an ‘Overweight’ rating and a $61 price target, citing the bank’s proven expense discipline, faster-growth loan categories, above-peer asset sensitivity, and potential for additional fee-based acquisitions as catalysts for share growth.
3. People’s United Financial, Inc. (NASDAQ:PBCT)
Number of Hedge Fund Holders: 19
Dividend Yield: 3.99% (as of January 4)
People’s United Financial, Inc. (NASDAQ:PBCT) is a bank and financial holding company which operates through its Commercial Banking and Retail Banking segments. The firm posted an EPS of $0.33 for the third quarter, which beat consensus estimates by $0.01. In October, the company declared a $0.1825/share quarterly dividend, amounting to a 3.9% yield for shareholders.
By the end of the third quarter, People’s United Financial, Inc. (NASDAQ:PBCT) stock was found in the portfolio of 19 hedge funds from the database of 867 elite hedge funds tracked by Insider Monkey. Last quarter, 24 hedge funds reported holding People’s United Financial, Inc. (NASDAQ:PBCT) shares.
2. New York Community Bancorp, Inc. (NYSE:NYCB)
Number of Hedge Fund Holders: 27
Dividend Yield: 5.48% (as of January 4)
New York Community Bancorp, Inc. (NYSE:NYCB) is up next on our list, and features an impressive dividend yield of 4.88%, after declaring a $0.17/share quarterly dividend in late October. The firm is a bank holding company which offers multi-family real estate loans and other financial services to clients in the United States.
For the third quarter, New York Community Bancorp, Inc. (NYSE:NYCB) posted an EPS of $0.31, which fell below consensus estimates by $0.01. The firm’s revenue of $333 million for the quarter failed to meet analysts’ expectations by $13.15 million.
By the end of the third quarter, 27 hedge funds were long New York Community Bancorp, Inc. (NYSE:NYCB), as compared to 30 hedge funds in the preceding quarter. Out of all the hedge funds tracked by Insider Monkey, Balyasny Asset Management was the leading shareholder of New York Community Bancorp, Inc. (NYSE:NYCB) shares, holding 7.2 million shares valued at $92.72 million.
1. TFS Financial Corporation (NASDAQ:TFSL)
Number of Hedge Fund Holders: 9
Dividend Yield: 6.27% (as of January 4)
TFS Financial Corporation (NASDAQ:TFSL) ranks 1st on our list of best bank dividend stocks. As of the third quarter, 9 out of 867 elite hedge funds tracked by Insider Monkey reported owning positions in TFS Financial Corporation (NASDAQ:TFSL). This was consistent from the previous quarter where the same number of hedge funds held stakes in the company.
TFS Financial Corporation (NASDAQ:TFSL) offers retail consumer banking services in the United States. In November, the bank declared a $0.2825/share quarterly dividend, boasting the highest dividend yield of all the bank stocks in our list with a 5.82% yield. The firm’s EPS of $0.06 for the third quarter was in-line with consensus estimates, while the revenue figure of $66.08 million was above analysts’ forecasts by $4.59 million.
TFS Financial Corporation (NASDAQ:TFSL) has been steadily improving its dividend payouts over the years. In 2014, annual payout was $0.14, and subsequently soared to $1.12 in 2020. As of December 16, the bank’s stock has seen a jump of 0.40% in the year to date. The bank’s originations remain strong, and its asset quality has seen significant improvement since the height of the Covid crisis.
Jim Simons’ Renaissance Technologies was the leading shareholder of TFS Financial Corporation (NASDAQ:TFSL) as of the third quarter. The billionaire’s hedge fund held 5.13 million shares of the bank valued at $97.84 million.
You can also take a look at 15 Best E-Commerce Stocks To Buy Now and 10 Best Long-Term Dividend Stocks to Buy and Hold.
