Banking & Finance

BofA Securities Raises Price Targets on Top Bank Dividend Stocks to Buy

Fifth Third is among the largest money managers in the Midwest. As of September 30, 2020, it had $422 billion in assets under care, of which it managed $53 billion for individuals, corporations and not-for-profit organizations through its Trust and Registered Investment Advisory businesses.

Shareholders receive a 4.20% dividend. The $28 BofA Securities price target was raised to $32, while the consensus target is $26.30. Fifth Third Bancorp stock was last seen trading at $25.72.

PNC Financial Services

This top regional bank is perhaps one of the best banking plays now. PNC Financial Services Group Inc. (NYSE: PNC) is one of the largest U.S. diversified financial services organizations and the seventh-largest U.S. bank by deposits, with $410 billion in assets.

PNC provides retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; and wealth management and asset management. With consistent earnings growth and a very positive and growing loan portfolio, the company is a premiere super-regional bank stock to own.

Shareholders receive a 3.67% dividend. The BofA Securities price target was raised from $136 to $150, and the consensus is set substantially lower at $122.53 PNC Financial Services stock closed at $125.44 on Wednesday.

Truist Financial

This seemingly off-the-radar company makes great sense for investors looking for a solid regional winner. Truist Financial Corp. (NYSE: TFC) is a bank holding company, incorporated in North Carolina and headquartered in Charlotte. The company was formerly known as BB&T, but it changed its name in December 2019 upon the acquisition of SunTrust Banks.

The complete transition to the Truist brand is expected to take about two years. Until then, customers of both BB&T and SunTrust will be served through their respective bank branches using the same apps, websites and services as before the merger closed. As part of the regulatory approval process, the new company will sell off 30 SunTrust branches in North Carolina, Virginia and Georgia to First Horizon Bank and divest $2.4 billion in deposits to “mitigate the competitive effects of the merger,” according to the Federal Reserve.

Truist’s footprint is located in one of the strongest and fastest-growing regions of the United States, and the analysts expect the company to maintain a competitive advantage over many of its competitors headquartered outside its footprint due to its being physically located in the southeast part of the country.

Investors receive a 3.70% dividend. BofA Securities has raised the price target from $50 to $57. The consensus figure is $46.37, and Truist Financial stock closed at $48.82.

Four top U.S. bank stocks are still incredibly cheap on a historical basis, come with dividends that should remain intact and offer investors with a long-term time frame tremendous opportunity. Given the market’s recent rally, and the jump in the banking sector, it may make sense to buy partial positions now and see how the rest of what could be a volatile end of the year plays out.

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