Time to Look at Banks on Dividend Hopes?

Now may be a good time to look at the big international banks, as hopes increase the companies will be allowed to raise their dividends sometime in the next few months. Names like Citigroup (NYSE: C), J.P. Morgan (NYSE: JPM), Bank of America (NYSE: BAC), Capital One (NYSE: COF) and Goldman Sachs (NYSE: GS) would all likely benefit as they are allowed to increase the dividends they pay to investors. Dividend investors, mutual funds based on yield, as well as ETFs that are dividend specific would cause increased buying pressure in the names, thus boosting share prices. Executives like Jamie Dimon and Lloyd Blankfein would also benefit, and if these two benefit, it's not a bad idea to be on the same side of the trade. Dimon would likely reap around $6 million per year just from dividend payments, which is almost a third of his pay... Read more