It is all over the news lately that our economy is slowing down again. 62 banks have been shut down by the FDIC since January 1st, 2011. If you ask me this is the best time to invest in high quality, former dividend paying US bank stocks. Canada bank stocks have been pretty much unfazed by the latest recession cycle, however US bank stocks have taken a beating. Bank of America (BAC), Citigroup (C), Morgan Stanley (MS).. the list goes on and on. US banks have halted their dividend payments or have reduced them to peanuts. Citigroup was selling at $53.30 on June 8th, 2007 and paying a .54 cent/share dividend. As of today the stock is selling at $26.77, post a 1 for 10 reverse stock split on May 9th, 2011, and currently paying a .01 cent/share quarterly dividend. Now is the time to act. These banks are well known names and although they were hit by the mortgage crisis/housing bubble of 2008, they are great long term investments. Do your due diligence, but ask yourself these two questions: Will I ever see another recession like the one in 2008 again in the next 100 years? Where will society go for bank loans when the economy finally stabilizes?
I am not saying US bank stocks are the best place to invest, but the whole sector includes various growth stocks with the potential of dividend increases for many years to come.
UTH3ANV5USYB
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