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

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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 Reason #1: A Bank Run Is Always Possible Though the history of banking dates back to as early as 2000 BC in Babylonia, the makings of the present-day banking system in the US really didn’t take hold until the beginning of the 20th century. Some financial historians may argue for a later date, but we … Read more

Dividend Increases/Decreases for the Week Ending January 29

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Below we provide a list of firms that raised/lowered their dividends during the week ending January 29. 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 A.O. Smith (AOS): now $0.24 per share quarterly dividend, was $0.19. AGCO (AGCO): now $0.13 per share quarterly dividend, was $0.12. Apartment Investment (AIV): now $0.33 per share quarterly dividend, was $0.30. Applied Industrial Technologies, Inc. (AIT): now $0.28 per share quarterly dividend, was $0.27. Archrock Inc. (AROC): now $0.1875 per share quarterly dividend, was $0.15. Arthur J. Gallagher (AJG): now $0.38 per share quarterly dividend, … Read more

Dividend Increases/Decreases for the Week Ending January 27

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Below we provide a list of firms that raised their dividends during the week ending January 27. 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 AGCO (AGCO): now $0.14 per share quarterly dividend, was $0.13. Air Products and Chemicals (APD): now $0.95 per share quarterly dividend, was $0.86. ALLETE (ALE): now $0.535 per share quarterly dividend, was $0.52. Applied Industrial Technologies (AIT): now $0.29 per share quarterly dividend, was $0.28. Arthur J. Gallagher (AJG): now $0.39 per share quarterly dividend, was $0.38. Bank First National (BFNC): now $0.16 per share quarterly … Read more

Dividend Increases/Decreases for the Week Ending January 25

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Below we provide a list of firms that raised their dividends during the week ending January 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 1st Source (SRCE): now $0.27 per share quarterly dividend, was $0.22. Air Products and Chemicals (APD): now $1.16 per share quarterly dividend, was $1.10. Alaska Air (ALK): now $0.35 per share quarterly dividend, was $0.32. Allergan (AGN): now $0.74 per share quarterly dividend, was $0.72. Applied Industrial Technologies (AIT): now $0.31 per share quarterly dividend, was $0.30. Berkshire Hills Bancorp (BHLB): now $0.23 per share quarterly … Read more

Dividend Increases/Decreases for the Week Ending January 24

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Below we provide a list of firms that raised their dividends during the week ending January 24. 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 Air Products and Chemicals (APD): now $1.34 per share quarterly dividend, was $1.16. Applied Industrial Technologies (AIT): now $0.32 per share quarterly dividend, was $0.31. Bank of the James Financial Group (BOTJ): now $0.07 per share quarterly dividend, was $0.04. Cambridge Bancorp (CATC): now $0.53 per share quarterly dividend, was $0.51. Capital Products Partners (CPLP): now $0.35 per share quarterly dividend, was $0.315. CNX Midstream Partners … Read more

Stock Market Outlook for 2021

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By Valuentum Analysts February 8, 2021 2020 was one for the history books. We covered our thoughts and reflections on the past year in our “2020 Won’t Soon Be Forgotten” article (link here), and now we are looking towards the future. Global health authorities should be able to bring an end to the ongoing coronavirus (‘COVID-19’) pandemic sooner than many had expected as several vaccines have already been improved for emergency use and several others appear increasingly likely to get approved. Global vaccine distribution activities are currently underway, and this should allow the world to slowly return to pre-pandemic activities. Before then, immense stimulus measures launched primarily in developed nations should support global economic activities until the public health crisis … Read more

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