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If you are expecting or hoping for a long term recovery in banking stocks especially those paying a nice dividend and want to reinvest those dividends in a retirement account, this may be an excellent time to start. Start by making a list of banks that might interest you. Go to a free site that separates stocks into sectors. Click on banking and you'll get a return based on year to date performance. Write down the best on the list and those that also pay a nice return of say 4% or greater. After compiling your list go to bauerfinancial.com and you can search by state then alphabetically by bank to get a star rating. Bauer's experts comb through financial records of the institutions rating them on a 0-5 star system. They recommend those with a 4 or 5 star rating. This information is free. You may have to pay for more detailed research. I've used this method many times and it usually pays off although nowadays it might take a few months to cash in.
I bought lots of shares of a thinly traded local bank that recently traded at about 15% of their usual range. They dropped the dividend but still have a 3 1/2 star rating, not too bad.
The local bank had 2 jumps of over 5% this week so I sold 1000 shares for a nice profit and will buy NYB, New York Community Bank on a dip. It has a 4 star rating and pays over 6% div. I keep repeating this as long as the rating doesn't dip and it has been quite profitable. For instance my local bank dropped to around 4.30 a couple weeks ago, nearing a several year low. I bought 1000 shares. Sold yesterday at 4.80 for a quick $500 profit. A few months ago NYB dropped for a few minutes below 15. I had a bid in and got it. Shortly it was over 17. The reinvesting of the divs. into stock along with any price appreciation really is adding up.
Study the charts monthly and daily. These banks seem to develop patterns that can become predictable after awhile. Remember to stick with higher rated banks so you don't get stuck.
-------------billy
I bought lots of shares of a thinly traded local bank that recently traded at about 15% of their usual range. They dropped the dividend but still have a 3 1/2 star rating, not too bad.
The local bank had 2 jumps of over 5% this week so I sold 1000 shares for a nice profit and will buy NYB, New York Community Bank on a dip. It has a 4 star rating and pays over 6% div. I keep repeating this as long as the rating doesn't dip and it has been quite profitable. For instance my local bank dropped to around 4.30 a couple weeks ago, nearing a several year low. I bought 1000 shares. Sold yesterday at 4.80 for a quick $500 profit. A few months ago NYB dropped for a few minutes below 15. I had a bid in and got it. Shortly it was over 17. The reinvesting of the divs. into stock along with any price appreciation really is adding up.
Study the charts monthly and daily. These banks seem to develop patterns that can become predictable after awhile. Remember to stick with higher rated banks so you don't get stuck.
-------------billy
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