The major banks were a key part of total yield for the U.S. stock market prior to the 2008 crash, and they will be so again some day.
They went to actual or near zero year by 2009 and are working their way back with permission of the regulators as they improve capital and pass stress tests.
We present the actual dividend amounts and yields for historical periods, and estimated forward periods of 2012, 2013 and 2014.
The historical yield are based on the daily total dividend paid in each year divided by the daily average closing price for the year.
The forward yields are based on the Thompson Reuters consensus dividend estimates divided by the price of each stock on April 19, 2012.
The five major banks reviewed are:
As the first chart below depicts, the 2014 dividend amounts for each bank are projected to be:
- C: $0.82
- BAC: $0.32
- JPM: $1.82
- USB: $1.03
- WFC: $1.29
Based on the closing price today (04/19/2012), the yields on today's cost at the end of 2014 are therefore projected to be, and are depicted by the second chart below:
- C: 2.35%
- BAC: 3.65%
- JPM: 4.21%
- USB: 3.30%
- WFC: 3.90%
Disclosure: QVM has no positions in any identified security as of the creation date of this article (April 19, 2012).
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: Disclosure: QVM has no positions in any identified security as of the creation date of this article (April 19, 2012).