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Yahoo
05-04-2025
- Business
- Yahoo
Is The PNC Financial Services Group (PNC) the Best Regional Bank Dividend Stock to Buy?
We recently published a list of the 11 Best Regional Bank Dividend Stocks to Buy. In this article, we are going to take a look at where The PNC Financial Services Group, Inc. (NYSE:PNC) stands against other best regional bank dividend stocks. The year 2024 proved to be a strong one for major US banks, with the six largest institutions collectively reporting a 20% increase in net profits compared to the previous year, according to FactSet data. This performance ranks among the most successful years for the US banking sector in the past two decades. The industry rebounded significantly following the widely publicized bank failures of 2023, which saw several prominent lenders collapse. Based on Financial Times estimates, trading revenue for the year climbed to $123 billion, reflecting a 10% rise from 2023, while investment banking fees jumped 34% to $36 billion. This surge was driven by a recovery in dealmaking activity later in the year, as more companies moved forward with equity and debt offerings. Regional banks have been gaining momentum within the banking sector following the regional banking turmoil of spring 2023, which prompted lenders to prioritize liquidity, often at any cost. While their performance was strong relative to the Russell small cap index, it still fell short of the broader market's full-year return of over 25.02%. Despite the gains in 2024, bank stocks have lagged the broader market over multiple years, creating an attractive investment opportunity at historically low valuations. By the end of the year, the price-to-earnings (P/E) multiples of the Regional Banking Index and Community Bank Index were nearly half that of the broader market's, highlighting their relative discount. Moreover, in the fourth quarter of 2024, approximately two-thirds of US regional banks reported higher earnings compared to the previous year. According to S&P Global Market Intelligence, 35 out of 51 banks with assets between $10 billion and $100 billion saw year-over-year growth in earnings per share (EPS) for the fourth quarter, based on financial reports released between January 13 and January 24. In addition, 27 regional banks posted quarter-over-quarter improvements, while 22 recorded EPS gains on both a quarterly and annual basis. Meanwhile, only 11 regional banks experienced EPS declines in both comparisons. A report from S&P Global Ratings noted that fourth-quarter net income improved due to easing pressures on net interest margins (NIM) and an increase in fee income. For the full year 2024, the net income benefited from reduced provisions and stable fee income, though NIM compression partially offset these gains. Regional banks saw another consecutive increase in net interest income (NII) during the quarter, supported by modest loan growth and an improved NIM. However, for the full year, NII remained under pressure. The report further mentioned that in the fourth quarter, median NIM rose by 5 basis points to 3.14%, as declining deposit costs outweighed the impact of lower loan yields and asset repricing. The firm anticipates a slight increase in earnings for 2025, driven by the possibility of higher NIMs and a gradual uptick in loan growth. The banking sector remains a favorite among investors as it ranks among the top two sectors for dividend payments. An S&P Global report estimated that banks worldwide distribute approximately $380 billion in dividends. Given this, we will take a look at some of the best dividend stocks from the regional banking sector. An investor confidently discussing portfolio options with their asset manager. For this article, we used a Yahoo Finance screener to identify regional banking companies. From the resultant list, we picked 11 stocks with the highest number of hedge fund investors, as per Insider Monkey's database of Q4 2024. The stocks are ranked in ascending order of hedge funds' sentiment towards them. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders: 67 The PNC Financial Services Group, Inc. (NYSE:PNC) is an American bank holding and financial services company that offers a wide range of related services to its consumers. The company delivered a strong performance in 2024 while continuing to invest in the long-term growth of its franchise. The bank expanded its customer base, strengthened client relationships, and remained committed to serving its stakeholders. It achieved record revenue and further reinforced its capital position. Meanwhile, PNC maintained a disciplined approach to cost management, resulting in positive operating leverage. The PNC Financial Services Group, Inc. (NYSE:PNC) reported revenue of $5.6 billion in the fourth quarter of 2024, which showed a 4% growth from the same period last year. The company posted a net interest income of $3.5 billion, reflecting a 3% increase, or $113 million, primarily due to lower funding costs and the ongoing repricing of fixed-rate assets. The bank's net interest margin improved by 11 basis points, reaching 2.75%. Meanwhile, fee income declined by 4%, or $84 million, to $1.9 billion, as elevated residential mortgage and capital markets activity in the third quarter contributed to the decrease. The PNC Financial Services Group, Inc. (NYSE:PNC) currently offers a quarterly dividend of $1.60 per share and has a dividend yield of 3.97%, as of April 3. The company returned $0.9 billion to shareholders in the most recent quarter, including $0.6 billion in dividends. In addition, PNC has been growing has dividends for 14 consecutive years, which makes it one of the best dividend stocks. Overall, PNC ranks 1st on our list of the best dividend stocks from the regional banking sector. While we acknowledge the potential of PNC as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than PNC but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
Associated Press
03-04-2025
- Business
- Associated Press
PNC Declares Dividend of $1.60 on Common Stock
PITTSBURGH, April 3, 2025 /PRNewswire/ -- The board of directors of The PNC Financial Services Group, Inc. (NYSE: PNC) declared a quarterly cash dividend on the common stock of $1.60 per share. The dividend will be payable May 5, 2025, to shareholders of record at the close of business April 16, 2025. The board also declared a cash dividend on the following series of preferred stocks: Series B: a quarterly dividend of 45 cents per share will be payable June 10, 2025, to shareholders of record at the close of business May 16, 2025. Series S: a semi-annual dividend of $2,500.00 per share ($25.00 per each depositary share, 100 of which represent one share of Series S preferred stock) will be payable May 1, 2025, to shareholders of record at the close of business April 16, 2025. Series T: a quarterly dividend of $850.00 per share ($8.50 per each depositary share, 100 of which represent one share of Series T preferred stock) with a payment date of June 15, 2025, will be payable the next business day to shareholders of record at the close of business May 30, 2025. Series U: a quarterly dividend of $1,500.00 per share ($15.00 per each depositary share, 100 of which represent one share of Series U preferred stock) will be payable May 15, 2025, to shareholders of record at the close of business April 30, 2025. Series V: a quarterly dividend of $1,550.00 per share ($15.50 per each depositary share, 100 of which represent one share of Series V preferred stock) with a payment date of June 15, 2025, will be payable the next business day to shareholders of record at the close of business May 30, 2025. Series W: a quarterly dividend of $1,562.50 per share ($15.6250 per each depositary share, 100 of which represent one share of Series W preferred stock) with a payment date of June 15, 2025, will be payable the next business day to shareholders of record at the close of business May 30, 2025. The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit MEDIA: Kristen Pillitteri (412) 762-4550 Bryan Gill
Yahoo
07-02-2025
- Business
- Yahoo
Is The PNC Financial Services Group (PNC) the Best Local Bank Stock to Buy Now?
We recently compiled a list of the . In this article, we are going to take a look at where The PNC Financial Services Group, Inc. (NYSE:PNC) stands against the other best local bank stocks. A report by PwC predicts a revival in the US banking industry due to a pro-business policy expected from the Republican government. Key drivers for growth will be an increase in the demand for loans, steady securities business, and a lower benchmark rate. The estimated growth in net income from the overall banking sector is around 5.7%. Deloitte predicts better economic growth in the US compared to 2024. Technology adoption can be a key driver for boosting output through efficiency in labor productivity. The CPI should also hover closer to the 2% market, prompting the central bank to lower interest rates. While lower lending costs may boost loan demand, a sticky deposit rate can hurt interest margins for banks. Deposit costs are expected to be at an elevated level of 2.03%, far above the 5-year average of 0.9%. This may create a pricing war between banks to procure more low-cost funds. READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In In 2024, the fee-based income for banks was driven by capital market activities. The trend is expected to continue as asset prices increase. Non-interest income as a percentage of average assets should reach a level of 1.5%, a figure that has not been breached in the last five years. The expense ratio for banks increased by 200 bps in 2024 to reach 60%. The ratio should hover around this level in the next few years. Credit quality may suffer marginally due to a growing loan book with delinquency rates expected to rise for credit card, auto, and commercial real estate loans. Larger banks with a diversified business are expected to perform better but regional banks have been strategically shuffling their book to obtain a more favorable product mix. Regional Bank ETFs have generated returns of 5.82%, 11.25,% and 25.33% for 1-month, 6-month and 1-year tenors. The underlying banks have demonstrated resilience in a challenging business environment without affecting their capital adequacy and credit quality. For this article, we scanned through various credible sources and identified their consensus picks of local bank stocks from their recent articles. Next, we sorted these companies based on the number of hedge funds in Insider Monkey's database that owned stakes in these companies. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here). An investor confidently discussing portfolio options with their asset PNC Financial Services Group, Inc. (NYSE:PNC) is a diversified financial services company headquartered in Pennsylvania that operates through three segments: Retail Banking, Corporate & Institutional Banking, and Asset Management Group. The PNC Financial Services Group (NYSE:PNC) delivered a strong 2024 fiscal with record revenue driven by 6% growth in its fee income business. Non-interest income offset the loss in earnings on account of 26 bps contraction in yields for its loan book. Fee income is poised to grow at 5% in 2025 with a strong demand for card and treasury business. The loan book may face challenges primarily due to stress in the mortgage lending business. With a CET1 ratio of 10.5%, The PNC Financial Services Group (NYSE:PNC) will continue to buy back shares and look to improve the return to its shareholders. While the net interest margin would continue to face pressure, the growth in consumer demand deposits should reduce the cost of funds in the next fiscal. Overall PNC ranks 1st on our list of the best local bank stocks to buy. While we acknowledge the potential of PNC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PNC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
