Seeking Alpha

New York Community Bancorp (NYCB) is upgraded to Buy at KBW, who gives the bank a 60% chance of...

New York Community Bancorp (NYCB) is upgraded to Buy at KBW, who gives the bank a 60% chance of executing an accretive acquisition after hearing CEO Joe Ficalora promising to do so at a conference this week. Doing so would likely push the bank into SIFI status, subjecting it - and its 7.5% dividend - to tougher regulatory scrutiny. A necessary evil, says Ficalora.
Comments (9)
  • what is SIFI status ??

     

    jim
    7 Mar 2013, 10:54 AM Reply Like
  • SIFI = systemically important financial institution

     

    It means they get stress-tested, have to follow rules of Basel III, etc.
    7 Mar 2013, 11:00 AM Reply Like
  • Not a bad thing necessarily to see NYB's dividend lowered. Company fundamentals and earnings quality support vast majority of stock price anyway so no solid reason to have a dividend over 2x the industry norm anyway.
    7 Mar 2013, 11:42 AM Reply Like
  • Easy to say if you do not own the stock. Part of their attraction,besides
    being very well managed, is the dividend. Cut the dividend and you will
    see a 1-2$ price drop. Due to the large insider ownership do not think
    they will seriously cut the dividend.
    7 Mar 2013, 11:51 AM Reply Like
  • Then it is a good time to buy more!! It is a well run Company!!
    7 Mar 2013, 12:47 PM Reply Like
  • If nycb cut it's dividend by 50%, it would make nycb a stronger bank financially. It would become stronger in the financial world and would accumulate cash and make themselves more attractive for a buyout. It would leave them with a 4% dividend which is still substantial and competitive with other banks. I also believe that with this the overall stock price would be up 2 to 4 points by the end of the year. T. Toscano..Appx 80,000 shareholder
    7 Mar 2013, 02:10 PM Reply Like
  • Got to agree with you T Toscano - bought NYCB 3 years ago as a safe home with a strong dividend , but growth has been disappointing . Maybe a cut in dividend might inject a bit of oomph to the stock! TomD
    7 Mar 2013, 04:02 PM Reply Like
  • Leave the dividend alone, a lot of retirees like myself bought it for the dividend. You too will be retired some day.
    7 Mar 2013, 05:39 PM Reply Like
  • They have said in the past that the next acquisition would be substantially financed with debt rather than stock, thus retaining the strength to maintain the dividend. Question is, who will they buy? They missed out on HCBK.
    7 Mar 2013, 05:43 PM Reply Like
DJIA (DIA) S&P 500 (SPY)