One of the best regional bank dividend stocks to buy
Recently, I’ve published a list of Buy 11 Best Regional Bank Dividend Stocks. In this article, we look at where Huntington BankShares Inc. (NASDAQ: HBAN) competes against other top regional bank dividend stocks.
2024 has proven to be a strong bank for major US banks. According to FactSet data, the six largest institutions collectively report a 20% increase in net profit compared to the previous year. This performance ranks as the most successful year for the US banking sector in the last 20 years. The industry has backed up significantly following the widely publicized bank failures in 2023. Based on Financial Times estimates, annual trading revenue rose to $123 billion, reflecting a 10% increase from 2023, while investment bank fees went from 34% to $36 billion. This surge was driven by a recovery in trading activity later in the year as more companies advanced in providing fairness and debt.
Regional banks have gained momentum within the banking sector following the regional bank turmoil in spring 2023, with lenders often taking liquidity at any cost. Their performance was stronger than Russell’s small cap index, but it still didn’t reach the full-year returns of the broader market, over 25.02%. Despite profits in 2024, bank stocks have lagged behind the wider market for several years, creating attractive investment opportunities with historically low ratings. By the end of the year, multiples of revenue (P/E) from the price of regional bank index and community bank index are roughly half of the broader market, highlighting relative discounts.
Additionally, in the fourth quarter of 2024, approximately two-thirds of US regional banks reported higher revenues compared to the previous year. According to S&P Global Market Intelligence, there are 35 out of 51 banks with assets of $10 to $100 billion in earnings per share (EPS) for the fourth quarter, 35 have grown from $10 to $100 billion in assets of $10 to $100 billion, according to S&P Global Market Intelligence. On the other hand, only 11 regional banks have experienced a decline in EPS in both comparisons.
A report by S&P Global Ratings noted that fourth quarter net income was improved due to increased tariff revenues, easing pressure on net profit margins (NIM). Full-year net income for 2024 was benefited from a provisional decline and stable fee revenue, although NIM compression partially offset these profits. Regional banks were further increased in net interest income (NII) during the quarter, supported by modest loan growth and NIM improvements. However, throughout the year, the NII remained under pressure.
According to the report, in the fourth quarter, the median NIM increased by 5 basis points to 3.14%. The company expects a slight increase in revenue in 2025 due to the possibility of higher NIMs and the possibility of gradually increasing loan growth.
The banking sector remains a favorite among investors as it ranks among the top two sectors of dividend payments. The S&P Global Report estimates that banks around the world are distributing dividends of approximately $380 billion. With this in mind, we’ll look at some of the best dividend stocks from the regional banking sector.
Is Huntington BankShares Corporation (HBAN) the best regional bank dividend stock to buy?
A professional banker ready to make a transaction with mortgage documents and hand pens stacked together.
In this article, we used Yahoo Finance Screener to identify local banking companies. From the list of results, we chose 11 shares with the highest number of hedge fund investors, according to Insider Monkey’s 2024 database. Stocks are ranked in ascending order of hedge fund sentiment.
Why are hedge funds interested in the stocks they accumulate? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter’s strategy was to select 14 small and large caps per quarter, returning 373.4% since May 2014, surpassing the benchmark by 218 percentage points (For more information, please see here).
Number of hedge fund holders: 44
Huntington Bancshares Incorporated (NASDAQ: HBAN) is an Ohio-based bank holding company that offers a wide range of banking services, including commercial and consumer banks. The company reported strong revenue in the fourth quarter of 2024, with revenues of $1.95 billion, up 13.5% from the same period last year. Net interest income of $44 million also rose 3% year-on-year. Additionally, the company’s average total deposits increased by 2% from the previous year.
In light of the 2023 banking crisis, Huntington Bank Shares Inc. (NASDAQ: HBAN) has implemented measures to protect against the possible effects of additional interest rate increases. The bank has launched a fixed payment swaption programme that serves as a form of insurance for its portfolio. The initiative aims to maintain the market value of the securities if interest rates rise by 2-3%, and serves as a protection against potential fluctuations in interest rates.
On January 17, Huntington Bank Shares Inc. (NASDAQ: HBAN) declared a quarterly dividend of $0.155 per share. This was the same as last quarter. The company does not hold a track record of dividend growth, but since 1989 it has paid regular dividends to shareholders, making it one of the best dividend stocks on the list. As of April 3, the stock’s dividend yield was 4.61%.
Overall, Hban 7th place A list of the best dividend stocks from the regional banking sector. While we acknowledge the potential of HBAN as an investment, our belief lies in the belief that some deeply undervalued dividend stocks offer higher returns and hold a greater commitment to doing it within a shorter time frame. If you’re looking for a deep, undervalued dividend stock that’s more promising than HBAN, but trades at 10 times its revenue and is increasing its revenue at double-digit interest rates per year, Cheap dividend stocks with dirt.
