Dividend Investing Ideas Center
Critical Facts You Need to Know About Preferred Stocks
Have you ever wished for the safety of bonds, but the return potential...
The middle ground can be a great place for investors to find great returns. Here, firms aren’t so big that they can’t continue to grow, but at the same time, they’re big enough to survive downturns. In the banking industry, the middle ground belongs to the regional banks. And our latest Best Dividend Growth Stocks Model addition happens to be one of the best, growing its dividend for nearly a decade and providing a nearly 4% yield!
The secret to our pick’s success has been its top-notch acquisition strategy and conservative nature. During the Great Recession, our pick used its hefty reserves to expand by buying suffering rivals. This had it outgrowing the confines of its original operating area and moving into the mid-Atlantic states, the Midwest and even the Sunbelt. These areas continue to feature strong deposits, commercial loans and housing growth.
At the same time, a focus on technology, apps and margin improvement has helped boost its bottom line. Add in a dose of rising rates, wherein our pick’s net interest margin benefits, and you have a recipe for dividend security.
With that, our pick remains a top-notch dividend growth play in the financial sector.
In addition to our new regional banking pick, we’ve increased our position in a logistics firm and a defense contractor as well as removed an industrial tool maker and reduced positions in a healthcare stock and a snack food producer.
You can check out the Best Dividend Growth Stocks Model Portfolio to explore all the stocks.