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4 Very Good Reasons Why We Don’t Like Dividends of Banking Stocks

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Untermyer: Is not commercial credit based primarily upon money or property?Morgan: No, sir. The first thing is character.Untermyer: Before money or property?Morgan: Before money or anything else. Money cannot buy it … a man I do not trust could not get money from me on all the bonds in Christendom. –Mr. JP Morgan’s testimony before the Pujo Committee (questioning from Samuel Untermyer), 1912-1913   Image: Bank Run in Michigan, USA, February 1933. Source: Public Domain. By Brian Nelson, CFA It’s sometimes easy to lose sight of the fragility of a banking firm’s business model. Let’s examine the reasons why we don’t like banking firms’ dividends. Reason #1: A Bank Run Is Always Possible. Reason #2: Others Have Tried to Invest in Bank Dividends and Have Failed. Reason #3: … Read more

Dividend Increases/Decreases for the Week of October 25

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Below we provide a list of firms that raised their dividends during the week ending October 25. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          AllianceBernstein (AB): now $0.77 per share quarterly dividend, was $0.71. American Electric Power (AEP): now $0.93 per share quarterly dividend, was $0.88. AMERISAFE (AMSF): now $3.00 per share special dividend, was $0.37. Archrock (AROC): now $0.175 per share quarterly dividend, was $0.165. Armstrong World (AWI): now $0.308 per share quarterly dividend, was $0.280. Atlantic Union Bank (AUB): now $0.34 per share quarterly dividend, was … Read more