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Cheap Financial Stocks In Price Up Trends: 4 Paying Decent Dividends – Forbes

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Stack of one hundred dollar bills close-up, macro color photography with shallow DOF

Stack of one hundred dollar bills close-up, macro color photography with shallow DOF

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Many financial stocks headed higher in price in October and that upward trend is continuing into November.

A benchmark for this sector – the Financial Select Sector SPDR exchange traded fund – actually broke out to a measurably higher level than its previous peak from January, 2018.

Here’s how it looks on the weekly price chart:

Breakout.

Financial SPDR ETF weekly price chart, 11 9 19.

stockcharts.com

Without referencing anything about interest rates or trade wars or currencies, we know that something about this sector is more pleasing at this point to investors than it was earlier this year.

That’s the beauty of price chart analysis. The former trading range is definitely now “former” – the breaking above of a previous significant high tells us that investor sentiment has changed. Whether this will continue is another question, but it’s generally agreed upon that trending higher is a favorable condition.

One of the biggest components of this index is Bank of America. Here’s the weekly price chart for this mammoth financial institution with the global reach and a long history:

Breakout.

Bank of America weekly price chart, 11 9 19.

stockcharts.com

With a price/earnings ratio of 12 and available for purchase at not too much past book value, I think we can call it cheap – at least relative to most other equities NYSE traded. The big bank is paying a 2.16% dividend.

In October, the stock attracted a “buy” rating from Odeon analysts and was moved from “neutral” to “overweight” by Atlantic Equities analysts. Societe Generale, on the other hand, took Bank of America from “hold” to “sell.”

Here’s the weekly chart of a less well-known name in the industry: Bancolombia, the New York Stock Exchange traded firm based in Bogota:

uptrend.

Bancocolombia weekly price chart, 11 9 19.

stockcharts.com

It’s the same kind of look and you get that international diversification. The decent trend upward from the beginning of October is now just above the previous peak from early 2018. The price/earnings ratio is 12.9 and they’re paying a 2.14% dividend. Average daily volume of 262,000 is relatively thin for a NYSE-listed stock.

Here’s the weekly price chart of a smaller-than-Bank of America financial that’s also breaking above previous highs and also trades on the New York Stock Exchange:

uptrend.

FNB weekly price chart, 11 9 19.

stockcharts.com

F.N.B. Corporation is going at a 12% discount to its book value with a price/earnings ratio of 10. Investors are being paid a 3.82% dividend. You can see on the price chart how it’s just broken above the previous 2019 highs and now trades back above the Ichimoku cloud.

And here’s one more:

uptrend.

Zion’s Bancorporation weekly price chart, 11 9 19.

stockcharts.com

Zion’s Bancorporation is breaking out above the downtrend line that had connected the early 2018 peak with the early 2019 peak. The increased amount of buying volume seems to confirm the move. Zion’s is trading with a price/earnings ratio of 11.9 and the Utah-based bank pays a 2.66% dividend.

Stats courtesy of FinViz.com.

I do not hold positions in these investments. No recommendations are made one way or the other.  If you’re an investor, you’d want to look much deeper into each of these situations. You can lose money trading or investing in stocks and other instruments. Always do your own independent research, due diligence and seek professional advice from a licensed investment advisor.