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    earl237's Avatar
    earl237 Posts: 532, Reputation: 57
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    #1

    Apr 15, 2009, 01:35 PM
    Best U.S. Bank Stock
    I was wondering what the best U.S. bank stock to invest in is. I heard that JP MorganChase is one of the better ones, but they cut their dividend recently. I am looking for a bank with a large and safe dividend. Some advice on other good dividend stocks would help too.
    walt17's Avatar
    walt17 Posts: 335, Reputation: 28
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    #2

    Apr 23, 2009, 12:31 PM
    A bank stock with a large and safe dividend does not exist. As you noted about JP MorganChase, the same is true of most large banks.

    To take it a step further, the larger the dividend the less safe it becomes. Also, keep in mind that large dividends are frequently destroyed by a loss of share price.

    So if you are going to invest for dividends, look for dividend growth rather than current yield. Focus on large companies, with a good balance sheet, and a long term history of raising the dividend. I don't know of any bank that will meet that criteria.
    Zazonker's Avatar
    Zazonker Posts: 126, Reputation: 19
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    #3

    Apr 30, 2009, 01:38 PM
    For what it's worth (remember free advice is worth almost as much as you pay for it), I like Wells Fargo.
    amdeist's Avatar
    amdeist Posts: 35, Reputation: 4
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    #4

    May 5, 2009, 06:56 PM
    Goldman Sacs is probably the best bank stock if you are going to invest in a bank stock. There are too many people in decision making capacities in the government that came from Goldman Sacs and have some affiliation.
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