3 Dividend-Paying Bank Stocks Going Ex-Dividend Next Week

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 |  Includes: BOH, FFBC, FNB
by: Michael Tsangaris

With a rising market and hence share prices, dividend yields fall and so, whilst there are many companies carrying higher yields than treasuries, finding one that compensates for the added risk of investing in equities narrows choices down.

Below, I have compiled a list of three bank stocks going ex-dividend on the week starting 27th February 2012. I have screened them for a market capitalization above $1 billion (with one exception lacking $20 million), so that they are liquid enough, and large enough so as not to be too speculative and with dividend yields above 4%. As they are bank stocks, which many see as speculative, this higher yield makes up for that shortfall. This is the screen sorted by ex-dividend date:

Bank of Hawaii Corporation (NYSE:BOH) goes ex-dividend Monday, February 27, 2012.

It has a market capitalization $2.15 billion. For fiscal Q3 2011 the company generated $96.77 million in net interest income, resulting in $43.31 million in net income, which implies a net interest margin of 3.23%. Total assets amount to $13.30 billion and total deposits at $10.01 billion. Total liabilities stood at $12.29 billion, with long-term debt totalling $30.71 million.

The company has a Return on Common Equity of 16.02%. At its most recent closing price of $46.69, the P/E ratio is 13.81, and Price-to-Book is 2.13. The most recent distribution of $0.45 represents a dividend yield of 3.86%.

F.N.B. Corporation (NYSE:FNB) goes ex-dividend Tuesday, February 28, 2012.

It has a market capitalization of $1.52 billion. For fiscal Q3 2011 the company generated $80.40 million in net interest income, resulting in $23.77 million in net income which implies a net interest margin of 3.60%. Total assets amount to $9.95 billion and total deposits at $7.52 billion. Total liabilities stood at $8.74 billion, with long-term debt totalling $426.74 million.

The company has a Return on Common Equity of 7.53%. At its most recent closing price of $11.95, the P/E ratio is 17.19, and Price-to-Book is 1.25. The most recent distribution of $0.12 represents a dividend yield of 4.02%.

First Financial Bancorp (NASDAQ:FFBC) goes ex-dividend Wednesday, February 29, 2012.

It has a market capitalization of $979.47 million. For fiscal Q3 2011 the company generated $65.22 million in net interest income, resulting in $15.62 million in net income, which implies a net interest margin of 4.87%. Total assets amount to $6.34 billion and total deposits at $5.41 billion. Total liabilities stood at $5.61 billion, with long-term debt totalling $76.88 million.

The company has a Return on Common Equity of 8.84%. At its most recent closing price of $16.81, the P/E ratio is 15.71, and Price-to-Book is 1.35. The most recent distribution of $0.15 represents a dividend yield of 7.38%.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.