Here Are 3 Top Bank Dividend Stocks You Should Buy

Is there a reason why bank robbers rob banks? The reason for this is that that's where the money is. In the world of dividend investing, there are numerous options available to investors. From dividend aristocrats to REITs, utilities, and consumer staples stocks, it can be overwhelming to find the right dividend stocks to include in your portfolio. The stock market can be cyclical, but bank stocks also have growth and stability in profits, which helps to keep dividend payments moving throughout the year.

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Bank stocks are good investments if you are looking for stability, consistency, and growth over the long run. Although money-center bank stocks tend to have smaller dividends than regional bank stocks, it is always worthwhile to explore the possibilities of regional banks in order to find better dividends with more potential for capital appreciation and income in the future.

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It is possible for regional banks to grow and have the possibility of being acquired since they have more room for growth. The dividend yield on a stock that falls in price is better than a stock that rises in price. In order to test pullback support levels, it is a good idea to wait for the market to pull back. To help you identify bank dividend stocks with outsized dividend yields to pay attention to, here are three to consider.

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New York Community Bancorp Inc. (NYSE: NYCB)

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With a dividend yield of 7.18%, this regional bank is very attractive to investors. As of Dec. 1, 2022, they have acquired Flagstar Bancorp, a regional bank based in Arizona, allowing them to become one of the largest in the nation. The NYCB is in the process of transitioning from a retail banking model to a commercial banking model. With respect to loans and deposits, the company continues to grow at a rapid pace. The company's Q4 2022 earnings release included the Flagstar acquisition as of Dec. 1, 2022, which bulged up the company's results for the quarter. It is estimated that assets grew by $63 billion to $90.1 billion, an increase of $6.3 billion.

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There was an increase of $69 billion in total loans. During the same period, specialty finance loans grew by 26% to $4.4 billion. There was a 52% increase in commercial real estate loans to $10.5 billion, primarily as a result of the Flagstar acquisition. There was an increase of 27% in total deposits in 202 to $587 billion, consisting of $16.1 billion from Flagstar and $7.6 billion from organic growth. In Q4 2022, the net interest margin (NIM) increased by 18% year-over-year to $379 million; in total, the NIM grew by 8% to $1.4 billion for the full year 2022.

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It has been an excellent year for NYCB in terms of its 2022 performance, as stated by its CEO Thomas Cangemi. “On a non-GAAP basis, we reported full-year diluted EPS of $1.23 and net income available to common stockholders of $603 million... Last year, our net income was a record; we broke that record in 2022... In 2022, we broke that record. The 2022 operating performance we achieved was very successful, and we see a growth in momentum as we enter 2023..”

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The Bank of N.T. Butterfield & Son Ltd. (NYSE: NTB)

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There is a 4.90% annual dividend yield paid by this Bermuda-based offshore regional bank. The company generates 35% of its revenue from fee-based income, and around 40% of its earning assets consist of securities. The loan portfolio of the company is dominated by floating-rate debt with a high concentration. It is primarily a mortgage lender for the islands of Bermuda, Cayman, and the Channel Islands, which results in the bank having very limited net interest income. A number of trust assets are also being acquired from Credit Suisse (NYSE: CS) in Guernsey, the Bahamas, as well as a branch in Singapore, as part of the deal. NIM improved from $74.5 million in the year-ago period to $94.6 million in the fourth quarter of 2022, up by 17% YoY. In Q4 of 2022, the banks of the Cayman Islands provided the government with a 15-year loan of $150 million at a 3.25% interest rate. There was a drop in the efficiency ratio below 60%. There is a great deal of caution taken by the bank when it comes to investing its money. During the meeting, the Board of Directors authorized the repurchase of up to three million shares of the company. The removal of pandemic-related travel restrictions and the encouragement of experiential travel should also boost tourism and stimulate local economies.

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Canadian Imperial Bank of Commerce (NYSE: CM)

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This is one of the largest banks in Canada, with a dividend yield of 5.48% on an annual basis. During the first quarter of 2023, the company released its earnings results, which came in at CC$1.72 per share, beating its own estimates by CC$.022. Analysts had expected CC$ 5.72 billion in revenues for the quarter, but revenues increased 7.8% YoY to CC$ 5.93 billion. The bank's bottom line was bolstered by an increase in interest rates and a decrease in provisions for credit losses (PCL). There was a rise of CC$ 3.21 billion in NIM in the third quarter of this year. To a total of CC$589 million in net income for private banking and business banking, a 14% increase year-over-year. CIBC CEO Victor Dodig commented, "As we continued to make steady progress in executing our client-focused strategy throughout the first quarter, we continued to deliver solid financial results. In a fluid economic environment, our team is focused on living our purpose as we help make our clients' ambitions a reality.

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