TrustCo Bank: A 4.5% Yield For A Bank Trading At TBV

Summary

  • TrustCo Bank is a rather conservatively managed bank: the majority of its assets consists of liquid securities and residential mortgages.
  • Essentially, the bank provides exposure to a basket of NY and FL residential mortgages.
  • The stock is currently trading at around its tangible book value and offers a 4.5% dividend yield with a 40% payout ratio.
  • This makes TrustCo attractively priced at the current share price.
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Introduction

It has been almost five months since I last discussed TrustCo Bank (NASDAQ:TRST) and while I was already charmed by the bank’s decent dividend yield and relatively low premium to its tangible book value, the stock has

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The Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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