Bank of America Corp or New York Community Bancorp; which one has...

Bank of America Corp or New York Community Bancorp; which one has a better dividend stock?


There’s an enough room for many investors in terms of investment portfolio. Sometimes it becomes really difficult for many to make certain choices. The investors certainly get many of the hard choices narrowing down their very own options to the bank stock keeping in mind their point of interests.

So now what investors must do? Here’s is what surely could be a guideline to many of them. The following is a brief organization of dividend stock battle royale, pitting megabank Bank of America against New York Community Bancorp, the regional New York City specialist.

On overviewing history, Bank of America has struggled mightily since the financial crisis, bleeding money from regulatory fines, Justice Department legal settlements, and a huge portfolio of troubled loans. However, today it is simpler and more focused than it was in the era preceding the financial crisis.

CEO Brian Moynihan boasted of the bank’s solid core loan growth, higher mortgage originations and the lowest expenses since 2008 in the Q.

Bank of America is about 45 times larger than New York Community Bancorp in terms of total assets as of June 30, 2015. But in terms of dividend yield, it’s the smaller bank that pumps out the out-sized yields. New York Community Bancorp’s dividend currently yields 5.4%, 4.9 times the yield of B of A.

INSIGHT: Bank of America is a mega bank, and has all the problems that come with being a mega bank. Its dividend yield is also paltry in comparison to New York Community Bancorp’s 5.4%. But B of A does appear to be on the rise, with dividend hikes a reasonable expectation with every passing quarter and year.

According to many analysts, Bank of America still has too much left to prove to recommend it as the winner in this dividend stock battle. Yes, the bank has done a great job recently in its efforts to turn things around — but the bull market and growing U.S. economy could be confounding factors in the bank’s success.

UPDATE: Instead of Bank of America, the better choice for investors is New York Community Bancorp.

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Brayden Fortin is a American with numerous years of investment experience in the American Equity Market and in the Global Commodity Market. He has a B.Com degree from a well respected Canadian university and has experience working in the wealth management industry. He is interested in delving into numbers to analyze companies and markets. He won a couple of international strategy simulation competitions involving decision making through numerical analysis, and also scored in the top 50 on the Bloomberg Aptitude Test (out of nearly 200,000 test takers).