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Which Banks Could Bump Up Their Dividends the Most?

By David Hanson and Matt Koppenheffer - Mar 26, 2014 at 2:32PM

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The results of the Fed's CCAR round of bank stress tests come out today, the results of which determine which banks get the go-ahead to bump up dividends and share repurchases. So which banks could see the biggest increases?

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?

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Wells Fargo & Company Stock Quote
Wells Fargo & Company
WFC
$49.41 (-1.67%) $0.84
American Express Company Stock Quote
American Express Company
AXP
$168.93 (1.19%) $1.98
Fifth Third Bancorp Stock Quote
Fifth Third Bancorp
FITB
$43.96 (-0.27%) $0.12
U.S. Bancorp Stock Quote
U.S. Bancorp
USB
$57.04 (-1.13%) $0.65
SunTrust Banks, Inc. Stock Quote
SunTrust Banks, Inc.
STI
M&T Bank Corporation Stock Quote
M&T Bank Corporation
MTB
$151.95 (-0.50%) $0.76
Truist Financial Corporation Stock Quote
Truist Financial Corporation
TFC
$59.76 (-1.35%) $0.82
The PNC Financial Services Group, Inc. Stock Quote
The PNC Financial Services Group, Inc.
PNC
$202.09 (-0.59%) $-1.21
Discover Financial Services Stock Quote
Discover Financial Services
DFS
$113.58 (-0.70%) $0.80

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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