Credit Suisse Sees Avg. Bank Payout ~23% in FY12 (C) (BAC) (JPM) (GS)
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Rating Summary:
22 Buy, 25 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
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Credit Suisse is getting bullish on the prospects for large banks to increase dividends -- and overall payouts -- to investors.
Institutions like J.P. Morgan (NYSE: JPM), Citigroup (NYSE: C), Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC), and U.S. Bancorp (NYSE: USB) could boosts dividends and increase stock buybacks in 2012.
An average payout -- combined between dividend yields and buybacks -- should be about 23 percent, Credit Suisse noted. The firm sees "material pick-up" in activity levels in 2012, as well as a comprehensive solution to alleviate wholesale funding in Europe, and some contagion risk concern. Bigger beneficiaries from these factors include Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS).
Later in the week, the Fed is expected to release framework outlining how it will oversee large banks. The proposal -- which could come as late as January -- is part of a global initiative to shore up institutions and prepare them for worst-case scenarios like high unemployment and increased debt defaults. Revised oversight is largely expected to following metrics set forth in Basel III.
Currently, J.P. Morgan is dominating the dividend arena among its peers, paying out 25 cents per quarter for a current yield north of 3 percent. Others like Wells Fargo and U.S. Bancorp, have a yield at about 1.8 percent to 1.9 percent.
Financials are mounting a rebound Tuesday, as sentiment returns to markets on strong German confidence, successful Spanish bond offerings, and a boost in new home starts.
Institutions like J.P. Morgan (NYSE: JPM), Citigroup (NYSE: C), Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC), and U.S. Bancorp (NYSE: USB) could boosts dividends and increase stock buybacks in 2012.
An average payout -- combined between dividend yields and buybacks -- should be about 23 percent, Credit Suisse noted. The firm sees "material pick-up" in activity levels in 2012, as well as a comprehensive solution to alleviate wholesale funding in Europe, and some contagion risk concern. Bigger beneficiaries from these factors include Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS).
Later in the week, the Fed is expected to release framework outlining how it will oversee large banks. The proposal -- which could come as late as January -- is part of a global initiative to shore up institutions and prepare them for worst-case scenarios like high unemployment and increased debt defaults. Revised oversight is largely expected to following metrics set forth in Basel III.
Currently, J.P. Morgan is dominating the dividend arena among its peers, paying out 25 cents per quarter for a current yield north of 3 percent. Others like Wells Fargo and U.S. Bancorp, have a yield at about 1.8 percent to 1.9 percent.
Financials are mounting a rebound Tuesday, as sentiment returns to markets on strong German confidence, successful Spanish bond offerings, and a boost in new home starts.
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