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Jim Trippon is an Amazon.com bestselling business and finance author, a practicing CPA, and a fee based investment advisor. His portfolio of companies includes J.M. Trippon & Company CPA, Trippon Wealth Management & Trippon Financial Publishing. Jim has dedicated his business career to... More
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  • Bank Dividend Stock Race To Become First In Increasing Their Dividend 0 comments
    Apr 20, 2010 11:24 AM | about stocks: BAC, JPM, GS, C, WFC, BBT
    Welcome To The Great Bank Dividend Race

    Bank of America (NYSE: <a href='http://seekingalpha.com/symbol/bac' title='Bank of America Corporation'>BAC</a>), JPMorgan Chase (NYSE: <a href='http://seekingalpha.com/symbol/jpm' title='JPMorgan Chase & Co.'>JPM</a>), Goldman Sachs (NYSE: <a href='http://seekingalpha.com/symbol/gs' title='Goldman Sachs Group Inc.'>GS</a>), Citigroup (NYSE: <a href='http://seekingalpha.com/symbol/c' title='Citigroup Inc.'>C</a>), Goldman, Wells Fargo (NYSE: <a href='http://seekingalpha.com/symbol/wfc' title='Wells Fargo & Co.'>WFC</a>), BB&T (NYSE: <a href='http://seekingalpha.com/symbol/bbt' title='BB&T Corporation'>BBT</a>), quarterly dividend, dividend increase, Dividend Genius, dividend stock, stock dividend, dividend stocks, stock dividends

    About: Bank of America (NYSE: BAC), JPMorgan Chase (NYSE: JPM), Goldman Sachs (NYSE: GS), Citigroup (NYSE: C), Goldman, Wells Fargo (NYSE: WFC), BB&T (NYSE: BBT), quarterly dividend, dividend increase, Dividend Genius, dividend stock, stock dividend, dividend stocks, stock dividends Bookmark and Share
    Now that Dow components Bank of America (NYSE: BAC) and JPMorgan Chase (NYSE: JPM), the two largest U.S. banks respectively, have reported their first-quarter earnings, the race to see which of the largest U.S. banks will be the first to raise their dividend. Both banks delivered solid earnings reports that handily beat analysts' estimates, but the positive reaction to JPMorgan's earnings was thrown out the window on Friday as the Goldman Sachs (NYSE: GS) fraud news derailed the entire market. Bank of America never even got out of the block, held back by the same news.

    Bank of America (NYSE: <a href='http://seekingalpha.com/symbol/bac' title='Bank of America Corporation'>BAC</a>), JPMorgan Chase (NYSE: <a href='http://seekingalpha.com/symbol/jpm' title='JPMorgan Chase & Co.'>JPM</a>), Goldman Sachs (NYSE: <a href='http://seekingalpha.com/symbol/gs' title='Goldman Sachs Group Inc.'>GS</a>), Citigroup (NYSE: <a href='http://seekingalpha.com/symbol/c' title='Citigroup Inc.'>C</a>), Goldman, Wells Fargo (NYSE: <a href='http://seekingalpha.com/symbol/wfc' title='Wells Fargo & Co.'>WFC</a>), BB&T (NYSE: <a href='http://seekingalpha.com/symbol/bbt' title='BB&T Corporation'>BBT</a>), quarterly dividend, dividend increase, Dividend Genius, dividend stock, stock dividend, dividend stocks, stock dividends

    It's an interesting time for the financial services sector. Investors in this sector have to contend with the Goldman news and Citigroup (NYSE: C), Goldman, Wells Fargo (NYSE: WFC) along with a spate of regional banks report earnings next week. Let's be honest, despite the nice run Citi shares have enjoyed recently, it would be startling to see that bank beat JPMorgan and BofA to the dividend punch.

    If Wells Fargo reports a solid quarter AND shows that it is setting aside less cash for bad loans, a la JPMorgan, Wells could be a dark horse to win this race, but that's tough bet to make. It may not be surprising to see Wells beat BofA to a dividend increase, but beating JPMorgan is another case altogether.

    Bank of America (NYSE: <a href='http://seekingalpha.com/symbol/bac' title='Bank of America Corporation'>BAC</a>), JPMorgan Chase (NYSE: <a href='http://seekingalpha.com/symbol/jpm' title='JPMorgan Chase & Co.'>JPM</a>), Goldman Sachs (NYSE: <a href='http://seekingalpha.com/symbol/gs' title='Goldman Sachs Group Inc.'>GS</a>), Citigroup (NYSE: <a href='http://seekingalpha.com/symbol/c' title='Citigroup Inc.'>C</a>), Goldman, Wells Fargo (NYSE: <a href='http://seekingalpha.com/symbol/wfc' title='Wells Fargo & Co.'>WFC</a>), BB&T (NYSE: <a href='http://seekingalpha.com/symbol/bbt' title='BB&T Corporation'>BBT</a>), quarterly dividend, dividend increase, Dividend Genius, dividend stock, stock dividend, dividend stocks, stock dividends

    So we're probably not going out on a limb when we say JPMorgan Chase will get around to a dividend increase sometime before 2010 is over and BofA may follow suit, although it could be early next before that bank ratchets its payout higher. Looking for a real darkhorse that could beat all of these names to the finish line? BB&T (NYSE: BBT) is one name to watch.

    Unfortunately, there are “X” factors weighing on this group. Goldman's fraud case is one. The other is the progress the financial reform package is making on Capitol Hill. Without knowing what kind of capital reserves they need to carry, big banks may use that as an excuse to keep their dividends paltry for now.


    Disclosure: no positions
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