Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, bank holding company Hudson City Bancorp
With that in mind, let's take a closer look at Hudson City's business and see what CAPS investors are saying about the stock right now.
Hudson City facts
| Headquarters (founded) | Paramus, N.J. (1868) |
| Market Cap | $5.8 billion |
| Industry | Savings and loans |
| Trailing-12-Month Revenue | $1.16 billion |
| Management |
Chairman/CEO Ronald Hermance Jr. CFO James Kranz |
| Return on Equity (average, past 3 years) | 9.8% |
| Dividend Yield | 5.4% |
| Competitors |
Bank of America
JPMorgan Chase |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 717 members who have rated Hudson City believe the stock will outperform the S&P 500 going forward. These bulls include WPThatcher and truthisntstupid.
Just two days ago, WPThatcher listed several of Hudson City's positives: "Great management. They avoided the excess of the 2000s, plus they're selling at a 52-week low with a div.yield of 5.3% and a 55% payout ratio. Selling at book value."
Hudson City shares have been pounded over the past week on disappointing fourth-quarter results, but many Fools think they're now too cheap to ignore. Currently, Hudson City even sports a substantially higher dividend yield (5.4%) than U.S. banking giants Bank of America (0.3%), JPMorgan (0.5%), and Wells Fargo
CAPS member truthisnstupid elaborates on the bull case:
If you're looking for banks that refused to take TARP money, never cut their dividend, and not only aren't going to have to but also still have a decade or more of unbroken dividend growth as well as a good yield, look no further. ...
I feel confident it's a good long-term pick. Do I care what it does in the next few months or even in the next year? No, after you look at these numbers, you should be thinking of what it will do over the next 3, 4, or 5 years.
Because this company has proven itself to be a winner, and random short-term gyrations in the market shouldn't matter. Through the best of times and the WORST of times, this is one bank that never compromised itself and let its shareholders down.
What do you think about Hudson City, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
