Profit Fan

Simmons First National: More To This 3% Yielder Than Meets The Eye

It would be hard to argue with anyone that Simmons First National Corp. (NASDAQ:SFNC) is a compelling investment at first glance. Returns are low, the bank's growing loan portfolio is very small compared to the potential represented by the size of its deposit base and the current valuation of 1.32X TBV is low but nothing to jump up and down for. However, after a closer look, I would argue that at this price investors are being paid a very healthy 3% dividend to wait for a bank with quite a few catalysts for higher returns.

Simmons First National is an Arkansas based financial holding company that operates 96 office throughout Arkansas, Missouri and Kansas. The bank last reported...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details