Cheap Stocks: 5 Banks Below Book With No Debt, Paying 3%+ Dividends

Cheap Stocks: 5 Banks Below Book With No Debt, Paying 3%+ Dividends

These are cheap, that is, in the Benjamin Graham sense of the word. It’s not that the price at the market is low but that right now these 5 banks are trading at less than book value. Among other things.

That none of them show any long-term debt is possible added value — a business that owes nothing typically stands a better chance of making it through tough times. A better chance, for sure, than those with more debt than equity.

Each of these banks is paying a dividend that yields in excess of 3%. How long they can continue to do so might be a question, especially considering the spectacular effects on the economy of the pandemic.

Nonetheless, again, since no debt is owed, a good MBA student might guess that dividends cuts could be less likely. It also might be the case that economics of the situation eventually require such cuts — no guarantees exist in the stock market.

It’s a decent bet that these names are beginning to show up on the “value” screens of hedge funds, large financial institutions and any individual investor familiar with the classic investment work of Professor Graham.

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