Which Banks Could Bump Up Their Dividends the Most?

Today, the Federal Reserve will release the results of the Comprehensive Capital Analysis and Review, or CCAR, round of bank stress tests this year, which will determine whether or not banks will be permitted to increase their dividends, or initiate share repurchase programs. American Express, Wells Fargo, U.S. Bancorp, and Fifth Third are excepted to see big bumps.

In this segment of Wednesday's Where the Money Is, Motley Fool banking analysts Matt Koppenheffer and David Hanson play a round of Rank It. They've each poured through the banking sector to find five stocks, ranked 1 through 5, for which banks they think could increase distributions to shareholders the most, including both dividend increases and share buybacks, normalized as a percentage of their book value. Will the banks in your portfolio make the list?

The biggest change you never saw coming
Do you hate your bank? If you're like most Americans, chances are good that you answered yes to that question. While that's not great news for consumers, it certainly creates opportunity for savvy investors. That's because there's a brand-new company that's revolutionizing banking, and is poised to kill the hated traditional brick-and-mortar banking model. And amazingly, despite its rapid growth, this company is still flying under the radar of Wall Street. To learn about about this company, click here to access our new special free report.


The article Which Banks Could Bump Up Their Dividends the Most? originally appeared on Fool.com.

David Hanson owns shares of American Express, BB&T;, and PNC Financial Services. Matt Koppenheffer owns shares of PNC Financial Services. The Motley Fool recommends American Express and Wells Fargo. The Motley Fool owns shares of Fifth Third Bancorp, PNC Financial Services, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Forex for Beginners

Learn about trading currencies and foreign exchange transactions

View Course »

What is Short Selling?

Make a profit when stocks prices fall.

View Course »

Add a Comment

*0 / 3000 Character Maximum