Financials a Buy for Dividends???

Here is a list of some ridiculous dividend yeilds from Financials

Bank Of America (BAC) 5.8%
Wachovia (WB) 5.9%
Citibank (C) 6%
Washington Mutual (WM) 9.3%
Barclays (BCS) 5.6%

Some of these dividends have always been growing (e.g. BAC has raised dividends for 30 straight years). I would expect Bank of America and Wachovia to continue paying their dividend and even raise it as usual in 08. Citigroups ability has been called into question and I wouldn’t bet on it but that dividend will probably continue.

As for the other banks, do your own research. But in any case if you are looking at financials, now may be a good time to buy.

Leave a Reply

%d bloggers like this: