by Robert Hauver
With the specter of Fed interest rate hikes looming over the market for the past 2 years, many interest-rate sensitive stocks have gotten sold off. However, there are some stocks which will benefit from higher rates, namely banks, and, in particular, small banks.
Why small banks vs. large ones? Because smaller banks stick to traditional lending and deposits as their business model, whereas larger banks also play with derivatives and other forms of trading to make $.
We found 2 small/micro cap bank stocks, which have gotten good support from the market in 2015: Click here to read more…
by Robert Hauver
Looking for outperforming dividend stocks to capitalize on rising interest rates? As it turns out, many regional and small bank stocks and ETF’s have been outperforming the S&P 500 handily over the past month, and year-to-date. Here’s a look at how 4 of these ETF’s have trumped the S&P 500 in these periods:
Digging down further, we culled out the stocks from the universe of outperforming small and regional banks, to find the high dividend stocks within this group. As you can see, these are a far cry from the 6% to 12% high yielding stocks which we usually write about, and also track in our High Dividend Stocks By Sector Tables. This group has a dividend yield range of 2.42% up to 3.53%, and its Dividend Payout Ratio range is quite wide, from a low of 30.80%, up to 92.60%:
Performance: All of these small bank stocks have outperformed the S&P 500 over the past month, and the overwhelming majority have also outperformed over the past year and year to date:
Click here to read more…