Leave The Lobby Before This Bank Robbery Goes Down
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Transcript of Leave The Lobby Before This Bank Robbery Goes Down
Welcome to Dividend Stocks Research Your premier site for
Rankings and Reviews of the best dividends stocks around. For more
info on dividend stocks visit our website
DividendStocksResearch.com
Hi, My name is Aaron and I‘m with Dividend Stocks Research, and today
were reviewing our recently published article…
No, it’s not the bank that’s going to be robbed.
The tellers’ drawers won’t be cleaned out.
But the bank’s investors are about to be picked clean.
such a precarious position?
This bank stock pays a dividend yield of 4.29%. But it takes 89% of
all the bank’s revenue to fund it.
This is not a recipe for dividend growth. It’s a recipe for dividend
disaster.
This bank is headquartered just 16 miles from Disneyland and its
financial statement is scary enough to live in the Haunted Mansion.
What’s the problem? Why is the Banc of California (BANC) with its $4 billion in assets and 80+ locations in
such a precarious position?
The bank has issued $375.61 million of debt over the past three years and asset growth is faster than
revenue growth.
How long do you think a company that’s basically losing money can go
on paying dividends?
Over the past year, the share price has been tanking, down more than
20% in an up market.
The average bank in America gets a return on its sales of 15.3%. At
Banc of California, the number is -1.2%.
Could things turnaround? Is the bank about to trade in its dismal performance for actual profits?
Believers are hard to find.
When we took a look at the Thomson/Reuters five year estimate
for the bank’s expected annual growth rate, we weren’t surprised to
see -6.0%.
BANC's average growth rate over the last 5 years has been 12.5%.
So if you own the stock, you already know it’s time to sell.
And if you’re looking for a bank stock that’s going to pay you a nice
dividend, here are three of our favorites.
Each one has a payout ratio around or below 60%.
Bank of Hawaii Corp. (BOH)Community Bank System Inc. (CBU)Westamerica Bancorp (WABC)
The yields are reasonable, below 4%.
And unlike Banc of California shareholders, you’re not going to be held up when the getaway car with
your dividends takes off.
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