Last Updated on 06/29/2021 by GS Staff
Q: Do bank stock pay dividends?
Many bank stocks do pay dividends, but not all of them. You must look at each bank stock individually to determine if it pays dividends.
You can determine if a bank stock pays dividends by going to a financial website like Yahoo! Finance and searching for a particular bank. The dividend information is typically readily available with the dividend paid and the yield information.
Generally, the megabanks like Bank of America and JPMorgan Chase pay dividends. However, smaller or regional bank stocks are the ones that you will more often not see dividends paid. This is especially true when the economy is unfavorable to the financials of banks.
Dividend-Paying Banks
The below tables gives you an idea of the dividends paid by banks. The first table reflects the nine largest banks in the United States. As you can see, all of these banks pay a dividend.
| Company | Stock symbol | Total Assets | Dividend | Dividend Yield |
|---|---|---|---|---|
| JPMorgan Chase | (JPM) | $2.87 trillion | 3.60 | 2.98% |
| Bank of America Corp. | (BAC) | $2.16 trillion | .72 | 2.51% |
| Wells Fargo | (WFC) | $1.75 trillion | .40 | 1.35% |
| Citigroup | (C) | $1.65 trillion | 2.04 | 3.41% |
| U.S. Bancorp | (USB) | $530.50 billion | 1.68 | 3.70% |
| Truist Bank | (TCF) | $488.02 billion | 1.80 | 3.81% |
| PNC Financial | (PNC) | $457.45 billion | 4.60 | 3.17% |
| TD Group | (TD) | $388.34 billion | 2.45 | 4.33% |
| Capital One | (COF) | $60.26 billion | .40 | 0.43% |
Now, let’s take a look at a random selection of smaller bank stocks. You can see that some banks offer a dividend while others do not.
| Company | Stock symbol | Total Assets | Dividend | Dividend Yield |
|---|---|---|---|---|
| Bank of South Carolina | (BKSC) | $445.013 million | .68 | 4.19% |
| Flagstar Bancorp | (FBC) | $23.266 billion | .20 | .52% |
| Ohio Valley Banc Corp | (OVBC) | $1.030 billion | .84 | 3.45% |
| Century Bancorp | (CNBKA) | $5.492 billion | .64 | .81% |
| Berkshire Hills Bancorp | (BHLB) | $13.210 billion | .48 | 2.64% |
| First Guaranty Bancshares | (FGBI) | $2.117 billion | .64 | 3.81% |
| OptimumBank | (OPHC) | $126.748 million | 0 | 0 |
| Colony Bankcorp | (CBAN) | $1.515 billion | .40 | 2.83% |
| Carver Bancorp | (CARV) | $578.770 million | 0 | 0 |
Remember, it is not always a bad thing when a company does not offer dividends. Often smaller companies use all of their funds for maximizing growth instead of issuing dividends. A company in accelerated growth mode may see its stock price increase well beyond what would have been realized from a dividend-paying stock.
However, the banking sector is one that commonly pays dividends to shareholders. If you find a bank that does not pay dividends, it may be a red flag that the bank is not performing financially well. A thorough examination of the company should always be completed before investing.
*Note that the above data is for educational purposes only and is not necessarily update to date information. Do not rely on the information for investment decisions.
