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.