People’s United Financial (PBCT)
isn’t going to win any sprints, but I don’t think that’s why most of
its shareholders own the stock. People’s United is a high-quality bank
that doesn’t take a lot of chances on lending, but instead chooses to
leverage a solid core deposit base in the Northeast U.S. while steadily
executing on a roll-up community bank M&A strategy and paying a
healthy dividend. I can, and will, quibble about unimpressive long-term
tangible book value growth, but steady dividend growth over time is not a
bad thing.
The shares haven’t really gone anywhere from when I last wrote about the stock,
underperforming the sector, and I’m not all that surprised. People’s
United has some counter-cyclical defensive characteristics, but I
thought those were already reflected in the share price, and I continue
to believe that is the case today.
Click here to continue:
Healthy Credit, A Good Dividend, And A Repeatable M&A Model Supporting People's United Financial
No comments:
Post a Comment