Dividend Reservoir: Reconsidering Bank Stocks

Are you a dividend investor? For many of us the answer is yes. Most of the articles within Seeking Alpha pertaining to dividend-oriented investing have a tendency to look backwards, projecting an income stream through the assumption of what happened in the past to a company's fortunes (and the ability to pay dividends) will continue to occur. Most of us don't have a problem with that concept, especially if one's income portfolio is well diversified. Jane Kim, in Banking on Bank Dividends in yesterday's Wall Street Journal, presents a well crafted article suggesting that dividend seekers should also look forward and seriously consider within a dividend portfolio securities that are apt to resume or significantly increase their quarterly payout. She focuses upon bank stocks.Banks, out of federal coercion or corporate necessity, cut or suspended dividends due to the financial crisis. It appears that many of these institutions are chomping... Read more