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Banks and Dividends

Although some of the 30-plus banks that are getting money from the Treasury Department through its $700 billion financial-industry rescue program have cut dividends in response to tough financial conditions, only one has suspended them.

In fact, BailoutSleuth's analysis of the quarterly payouts by those banks shows that at least 10 will initially provide greater annual dividend yields to shareholders than they will to taxpayers supplying the new capital.

At current stock prices and dividend rates, the annual yield on the 10 banks' common shares will exceed the 5 percent that they are paying on the preferred shares they are selling to the federal government.

Eleven Banks receiving Bailout Money

Merrill Lynch Inc.
Bank of America
Morgan Stanley
US Bancorp
Marshall & Ilsley Corp.,
Keycorp
BB&T Corp.
Fifth Third Bancorp
Huntington Bancshares Inc.
First Financial Bancorp
Midwest Banc Holdings Inc

Full Article at: http://bailoutsleuth.com/2008/11/banks-and-dividends-continued