In this article, we will look at 10 bank dividend stocks with over 4% yield.
Dividend stocks are a great way to diversify your investment portfolio and develop a passive income stream, especially in times of surging inflation and increased market volatility. Dividend-paying stocks have been known to offer stable and profitable returns. According to The Power of Dividends by Hartford Funds, companies that grew or initiated dividend policies were seen to be profitable and relatively more stable than other companies since 1973. The average annual returns, from 1973 to 2021, of companies that increased or initiated dividend policies, were reported to be 10.68%. This is compared to 4.79% for the companies that don’t pay dividends and -0.46% for dividend eliminators.
Bank stocks are expected to outperform the market this year, according to S&P Global Market Intelligence’s sector-outlook analysis on banking and financial services companies conducted in January. A rise in bank lending and low deposit betas are projected in the foreseeable future.
According to the Wall Street Journal, the S&P 500 financials sector grew by 5.4% in the first week of January 2022. The sector’s performance has been stronger than ever for the first time since 2010 when the S&P 500 index lost 1.9%. A Deloitte survey that targeted banking executives across nine major markets found that 88% of the respondents anticipate banks to be profitable in 2022 and their revenues to increase.
Many renowned banking companies such as Bank of America Corporation (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Morgan Stanley (NYSE:MS), and Citigroup Inc. (NYSE:C) have been known for posting remarkable gains and announcing handsome dividends for some time now. However, for the purposes of this list, we will be looking at banking companies that offer dividend yields that are greater than 4%.
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Our Methodology
For this article we picked bank stocks that offer greater than 4% yield, have strong dividend histories, and are also popular among hedge funds today. For each stock, we included the hedge fund sentiment, which we believe to be a key metric when considering investment options. As of the fourth quarter of 2021, Insider Monkey keeps track of 924 elite hedge funds.
10 Bank Dividend Stocks with Over 4% Yield
10. Canadian Imperial Bank of Commerce (NYSE:CM)
Number of Hedge Fund Holders: 15
Dividend Yield as of March 9: 4.13%
Canadian Imperial Bank of Commerce (NYSE:CM) provides various financial products and services to personal, business, public, and institutional clients in Canada, the United States, and internationally. As of March 9, 2022, the stock has a forward yield of 4.13% and a 5-year dividend growth rate of 5.40%.
This February, the Canadian Imperial Bank of Commerce announced that its board of directors had declared a quarterly cash dividend of Canadian $ 1.61 per share. The stock had a forward yield of 4.16% at the time of the announcement. The dividend is payable on April 28, 2022, to shareholders of record on March 28, 2022.
On February 28, 2022, Scotiabank analyst Meny Grauman raised his price target on Canadian Imperial Bank of Commerce to Canadian $184 from Canadian $182 and maintained an Outperform rating on the shares.
By the end of the fourth quarter of 2021, 15 hedge funds held stakes in the Canadian Imperial Bank of Commerce worth $257.43 million. According to our data, Galibier Capital Management is the largest stakeholder in the Canadian Imperial Bank of Commerce as of March 8, 2022. The fund’s stake in the bank is in excess of $67.54 million, which accounts for 9.86% of the fund’s 13F portfolio.
9. Investors Bancorp, Inc. (NASDAQ:ISBC)
Number of Hedge Fund Holders: 23
Dividend Yield as of March 9: 4.30%
On January 26, 2022, Investors Bancorp, Inc. (NASDAQ:ISBC) released its earnings for the fourth quarter of 2021 in which the company beat EPS by $0.08. The bank holding company reported earnings per share of $0.40 and generated over $216.4 million in quarterly revenues. On top of this, the stock has gone up by 10.29% over the past six months.
Last November, Investors Bancorp, Inc. announced that stockholders of the company approved the planned merger with Citizens Financial Group (NYSE:CFG). The transaction is expected to be carried out in the first half of 2022.
As of March 9, 2022, Investors Bancorp, Inc. has a forward yield of 4.30% and boasts a 5-year dividend growth rate of 15.68%. The company has been consistent with its dividend increases for the past seven years.
Investors Bancorp, Inc. was found on 23 hedge fund portfolios at the close of the fourth quarter of 2021. The total stakes that these funds had in the company amounted to $96.84 million, up from $73.94 million in the previous quarter when there were 20 hedge funds that held stakes in the company. As of March 3, 2022,
Millennium Management is the largest stakeholder in the company having stakes of $32.95 million.
Much like Bank of America Corporation, JPMorgan Chase & Co., Morgan Stanley, and Citigroup Inc., Investors Bancorp, Inc. is a company that offers strong dividends.
8. Huntington Bancshares Incorporated (NASDAQ:HBAN)
Number of Hedge Fund Holders: 25
Dividend Yield as of March 9: 4.37%
Huntington Bancshares Incorporated (NASDAQ:HBAN) is an American bank holding company and is among the Fortune 500. As of March 9, 2022, the stock has a forward yield of 4.37%.
On March 1, 2022, Huntington Bancshares announced its plans to acquire Capstone Partners. Capstone Partners is an investment firm that serves middle-market companies. The transaction is expected to close in the first half of 2022.
Huntington Bancshares Incorporated has been consistent with announcing dividends for over 11 years now. On January 21, 2022, the company announced that its board of directors declared a quarterly cash dividend of $0.155 per share, in line with the previous. The dividend is payable on April 1, 2022, to shareholders of record on March 18, 2022.
According to our hedge fund data, Huntington Bancshares Incorporated was spotted on 25 hedge fund portfolios at the close of the fourth quarter of 2021. The total stakes of these funds in the company exceeded $402.74 million, up from $298.89 million in the previous quarter with 27 positions.
Ken Griffin’s Citadel Investment Group is the dominating shareholder in Huntington Bancshares Incorporated based on SEC 13F filings that were updated on March 8, 2022. The fund’s stake in the company was valued at $185.91 million, up 2757% from $7.53 million on February 17, 2022. The investment covers 0.03% of Citadel Investment’s 13F portfolio.
Huntington Bancshares Incorporated is a high-yield bank stock. Other bank stocks that have promising yields among their offerings include Bank of America Corporation, JPMorgan Chase & Co., Morgan Stanley, and Citigroup Inc..
7. Ames National Corporation (NASDAQ:ATLO)
Number of Hedge Fund Holders: 8
Dividend Yield as of March 9: 4.56%
Ames National Corporation (NASDAQ:ATLO) operates as a multi-bank holding company based in Ames, Iowa. The company provides various banking products such as different types of loans, accounts, deposit certificates, wealth management, and custodial services.
As of March 9, 2022, Ames National Corporation has a forward yield of 4.56% and boasts 12 years of consistent dividend increases. Moreover, the stock has a 5-year dividend growth rate of 4.36%. Ames National Corporation has gained 3.30% over the past six months.
By the end of the fourth quarter of 2021, Ames National Corporation was spotted on 8 hedge fund portfolios. The total stakes that these hedge funds held in the company were valued at $19.15 million. As of February 23, 2022, Stadium Capital Management is the lead stakeholder in the company, having stakes of $8.74 million. The investment accounts for 3.28% of the fund’s Q4 2021 investment portfolio.
6. Mizuho Financial Group Inc. (NYSE:MFG)
Number of Hedge Fund Holders: 7
Dividend Yield as of March 9: 5.51%
Mizuho Financial Group Inc. (NYSE:MFG) is involved in banking, trust, securities, and other financial businesses. The company has operations in Japan, the Americas, Europe, Asia, and internationally. Mizuho Financial Group Inc. operates through five segments: Retail & Business Banking Company, Corporate & Institutional Company, Global Corporate Company, Global Markets Company, and Asset Management Company.
On February 2, 2022, Mizuho Financial Group Inc. announced earnings for the fiscal third quarter of 2022, in which the company beat on revenue. The company reported earnings per share of $0.06 for the quarter. Mizuho Financial Group Inc. reported that its revenue came out at $5.12 billion, up 63.74% year over year, beating estimates by $463.74 million.
Insider Monkey’s data shows that 7 hedge funds had Mizuho Financial Group Inc. on their investment portfolios at the close of the fourth quarter of 2021, up from 6 positions in the third quarter of 2021. The stakes of these hedge funds exceeded $10.31 million.
Jim Simmon’s led Renaissance Technologies is the dominating shareholder in the company as of March 2, 2022. The fund’s stake is in excess of $6.57 million.
5. United Security Bancshares (NASDAQ:UBFO)
Number of Hedge Fund Holders: 6
Dividend Yield as of March 9: 5.41%
United Security Bancshares (NASDAQ:UBFO) operates as a bank holding company for the United Security Bank. The company provides a range of commercial banking services to the business and professional community, as well as to individuals in California. As of March 9, 2022, the stock has a forward yield of 5.41%.
United Security Bancshares was a part of 6 hedge fund portfolios by the end of the fourth quarter of 2021. The total stakes of these hedge funds in the company were in excess of $12.48 million, up from $6.73 million in the previous quarter with 4 positions. Based on these numbers, we can see that the hedge fund sentiment for the stock is positive.
As of February 23, 2022, Rhino Investment Partners is the top hedge fund having the most stakes in United Security Bancshares based on SEC 13F filings. According to our data, the fund’s stake in the company amounted to $3.51 million which accounts for 1.66% of the Rhino Investment Partners’ Q4 2021 investment portfolio.
4. Northwest Bancshares, Inc. (NASDAQ:NWBI)
Number of Hedge Fund Holders: 13
Dividend Yield as of March 9: 5.84%
On January 24, 2022, Northwest Bancshares, Inc. (NASDAQ:NWBI) announced that its board of directors declared a quarterly cash dividend of $0.20 per share. The stock’s forward yield at the time was 5.6%, which, as of March 9, 2022, is up to 5.84%.
This January, Northwest Bancshares, Inc. released earnings for the fiscal fourth quarter of 2021, for which the company beat on EPS by $0.04. The company reported earnings per share of $0.26 and generated revenues that amounted to $123.7 million. Moreover, the stock has gone up by 9.26% over the past six months.
At the close of the fourth quarter of 2021, Insider Monkey identified 13 hedge funds that held stakes in Northwest Bancshares, Inc. which were worth approximately $11.96 million. Of these hedge funds, Two Sigma Advisors had the highest stakes in the company, worth $3.17 million.
3. New York Community Bancorp, Inc. (NYSE:NYCB)
Number of Hedge Fund Holders: 30
Dividend Yield as of March 9: 6.08%
New York Community Bancorp, Inc. (NYSE:NYCB) is one of the largest banks in the United States. 30 hedge funds held stakes in the company at the end of the fourth quarter of 2021, up from 27 hedge funds in the third quarter of 2021. The stakes were valued at $455.82 million.
On January 26, 2022, New York Community Bancorp, Inc. declared a quarterly cash dividend of $0.17 per share. The company also reported earnings for Q4 2021 this January. New York Community Bancorp, Inc. reported earnings per share of $0.31 and generated revenues amounting to $338 million, up 4.7% year over year. Moreover, the stock has a forward yield of 6.08% and a PE ratio of 8.02 as of March 9, 2022.
As of March 7, 2022, Schonfeld Strategic Advisors owns the most shares of New York Community Bancorp, Inc., making the fund the leading stakeholder in the company. The fund’s stake in the company was valued at $72.07 million, which accounts for 0.65% of its 13F portfolio.
2. Banco Santander (Brasil) S.A. (NYSE:BSBR)
Number of Hedge Fund Holders: 6
Dividend Yield as of March 9: 6.32%
Banco Santander (Brasil) S.A. (NYSE:BSBR) provides banking products and services to individuals, small and medium enterprises, and corporate customers in Brazil and internationally. The company operates through two segments, Commercial Banking and Global Wholesale Banking. As of March 9, 2022, the stock has a forward yield of 6.32% and has gained 18.60% year to date.
This January, Goldman Sachs analyst Tito Labarta upgraded Banco Santander (Brasil) S.A. to Neutral from Sell and maintained a $6 price target.
Out of 924 elite hedge funds being tracked at Insider Monkey, 6 held stakes in Banco Santander (Brasil) S.A. by the end of the fourth quarter of 2021. The total value of these stakes was in excess of $7.35 million. Ken Griffin’s Citadel Investment Group was the leading stakeholder in the company, having stakes worth $4.56 million as of February 23, 2022.
1. TFS Financial Corporation (NASDAQ:TFSL)
Number of Hedge Fund Holders: 13
Dividend Yield as of March 9: 6.84%
TFS Financial Corporation (NASDAQ:TFSL) provides retail consumer banking services in the United States. As of March 9, 2022, the stock has a forward yield of 6.84% and a forward price-to-earnings ratio of 71.78. The company has been increasing dividends for the past seven years consistently and has a 5-year dividend growth rate of 18.87%, along with an annual payout ratio of 432.69%.
On February 25, 2022, TFS Financial Corporation announced that its board of directors have declared a quarterly cash dividend of $0.2825 per share, in line with previous. The stock’s forward yield at the time of the announcement was 6.55%. The dividend is payable on March 22, 2022, to shareholders of record on March 8, 2022.
This January, TFS Financial Corporation announced earnings for the fiscal first quarter of 2021. According to data released by TFS Financial Corporation, the company’s earnings per share for the quarter were $0.06 and the company generated $57.84 million in quarterly revenues.
At the close of the fourth quarter of 2021, 13 hedge funds had TFS Financial Corporation among their 13 holdings, up from 9 positions in the third quarter of 2021. The total stakes of these funds in TFS Financial Corporation exceeded $125.68 million.
Jim Simons’ Renaissance Technologies was the top hedge fund, by value, that held stakes in TFS Financial Corporation. According to Insider Monkey’s data, as of February 25, 2022, the fund’s stake in the company was a whopping $88.56 million. The investment covers 0.11% of Renaissance Technologies Q4 2021 13F portfolio.
You can also take a look at 10 Best Dividend Stocks for Long Term and 10 Best Dividend Stocks to Buy According to Billionaire Howard Marks.
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This article is originally published at Insider Monkey.
