Dividend Champion Banks: The Best Of The Best In Credit Quality

Seeking AlphaDividend StrategyDividend Champion Banks: The Best Of The Best In Credit QualitySep. 9, 2020 3:55 PM ET|| Includes: AROW, BMTC, CFR, FLIC, FMCB, UMBFby: Richard J. ParsonsRichard J. Parsons Banks10 X Risk Management Llc.cls-1{fill:#024999;}SummaryHere is my third Seeking Alpha article spotlighting the nation's 30 Dividend Champion banks.
While all the Dividend Champion banks have impressive track records navigating business cycles and managing credit, a few stand out as Best of the Best.
Here is a list of High Quality Dividend Champion banks with excellent credit history that are selling at deep discount to historic valuation.

A Series of Articles Spotlighting Dividend Champion Banks
Having wrapped up the initial research phase for a second edition to my 2016 book about bank investing, I am now drilling deeper into major themes that may have the greatest benefit to long-term bank investors.
One of those themes builds on the Dividend Champion banks that I spotlighted in chapter 8 of the book. As I pointed out in the first Seeking Alpha article, Dividend Champion bank valuations are currently at historic lows.
The question for investors: Are the valuations low because these banks are under-appreciated or because they are a value trap?
Banks: Opportunity or Value Trap?
The risk that the banking sector is a value trap is significant today.
It is possible that the industry has entered a new paradigm that results in a permanent reset of bank valuations. This new paradigm may reflect the investment community's skepticism that banks cannot overcome a low interest rate world where the risks of stagflation or deflation are real.
If there is a new paradigm for bank valuations, then the current discount of 35% to 45% for Dividend Champion banks (and close to 50% for the sector) may not reflect an opportunity but a value trap.
On the other hand, if there is a potential for the banking sector to see a reversion to... Read more