The chart below shows the five-year performance comparison of the top three Chilean banks and the four largest banks in the U.S:
[Click to enlarge]
|S.No.||Bank||Ticker||Dividend Yield as of Mar 25, 2011||5-Year Total Return||Country|
|1||Banco De Chile||BCH||4.38%||120.35%||Chile|
|3||Banco Santander Chile||SAN||3.18%||91.07%||Chile|
|4||Bank of America||BAC||0.30%||-71.56%||U.S.|
In the past five years, the S&P 500 has been flat at 0.83%. Among the four largest U.S. banks, only JPMorgan Chase has been a decent performer. This week, the Federal Reserve rejected Bank of America’s proposal to increase its dividend payments. JPMorgan Chase has announced plans to buy back stock worth $15 billion and raise its dividend in the second quarter to 25 cents a share up from 5 cents now. Wells Fargo has increased the quarterly dividend rate to $0.12 a share and announced the repurchase of its common stock by an additional 200 million shares. Citigroup plans to reinstate a one-cent dividend and implement a reverse stock split in the ratio of 1 for 10 after the market close on May 6. Citi’s total outstanding shares stands at a massive $29 billion, and in the last 50 days an average of 509 million shares were traded on the NYSE. As a result of the reverse split, the daily trading volume on the NYSE is projected to fall by an incredible 11% according to a Reuters report.
Disclosure: Long BCH