I have been looking for a couple of financial stocks to move into. This looks to be on a bit of a sale after today at under $24 and dividend of 2.8%. Most news on it seem to be suggesting it is worth at least 10-20% more than this current price so some room for growth from entry at current levels.
Thoughts? Any bank stocks you would put as a better buy and why pls.
Personally if I would to touch Financial sector.
I would go with Canadian banks, ie. RY or TD. AA- Credit rating, low LT debt on capital.
Higher Earnings Yield around 8%-8.5%, higher dividend yield 4.4-5.1%.
There are also BMO/BNS which are good Canadian banks, A+ rating low LT debt to capital. 8.92%-9.22% earnings yield, with 5.19%-6.32% dividend yield.
Vs US banks , A- credit rating, higher LT debt on capital, Earnings yield 7.8%, dividend yield, 2.8%.
If I have to pick US bank, then maybe JPM above BAC.
But anyway, do your DD before deciding.
I would go Morgan Stanley if I were going to buy an American bank. Huge wealth managment, price to book is extremely well placed and buying etrade is smart.
But that’s just my view with no major DD
The same Bank was just fined for violations of short selling regulation.
That’s correct. Can you name a bank that hasn’t paid some sort of fine for a breach of regulations?
Yeah, I think it’s attractive. I own JPM. But apart from them and BAC I would normally stay well clear. I note that Citigroup has taken a big hit since a decent-looking earnings, so I haven’t looked at the risk/reward of Citi at current prices or recently.
Yes I have been looking at Canadian banks too, considering BNS and Maybe RY too. As UK seem a complete non starter right now, so US or Canadian are the options. Canadian seems more stable but US ones at current prices perhaps more upside (with some risk).
Any good reading about current banks etc very welcome to share here pls 
Well, I wouldn’t agree on upside. Earnings yield, which represents upside based on fundamentals clearly shows Canadian banks have more upside and more undervalued.
That is all based on historical pricing/premium for the mentioned bunch.
Better people than me are long the Canadian Banks. They aren’t particularly attractive, to me, though. At least, compared to the US ones. This is based on their current situation regarding impaired loans at the Canadian banks and the credit cycle in Canada.
From my own list, some of the bigger named banks
| # | Name | TICKER | SECTOR | AVG | TREND | RSI |
|---|---|---|---|---|---|---|
| 1 | MORGAN STANLEY (XNYS:MS) | MS | FINANCIAL | 6.57% | UP | 52.13 |
| 2 | THE GOLDMAN SACHS GROUP, INC. (XNYS:GS) | GS | FINANCIAL | 6.16% | UP | 53.70 |
| 3 | ROYAL BANK OF CANADA (XNYS:RY) | RY | FINANCIAL | 4.06% | UP | 56.78 |
| 4 | CANADIAN IMPERIAL BANK OF COMMERCE (XNYS:CM) | CM | FINANCIAL | 5.31% | UP | 59.69 |
| 5 | INVESCO LTD. (XNYS:IVZ) | IVZ | FINANCIAL | 12.15% | DOWN | 61.41 |
| 6 | BANK OF MONTREAL (XNYS:BMO) | BMO | FINANCIAL | 0.24% | DOWN | 57.29 |
| 7 | JPMORGAN CHASE & CO. (XNYS:JPM) | JPM | FINANCIAL | -9.97% | DOWN | 50.66 |
| 8 | THE CHARLES SCHWAB CORPORATION (XNYS:SCHW) | SCHW | FINANCIAL | -8.00% | DOWN | 55.07 |
| 9 | THE PNC FINANCIAL SERVICES GROUP, INC. (XNYS:PNC) | PNC | FINANCIAL | -10.71% | DOWN | 53.19 |
| 10 | BANK OF AMERICA CORPORATION (XNYS:BAC) | BAC | FINANCIAL | -14.14% | DOWN | 50.33 |
| 11 | U.S. BANCORP (XNYS:USB) | USB | FINANCIAL | -15.89% | DOWN | 51.81 |
| 12 | CITIGROUP INC. (XNYS:C) | C | FINANCIAL | -27.44% | DOWN | 42.35 |
| 13 | M&T BANK CORPORATION (XNYS:MTB) | MTB | FINANCIAL | -24.95% | DOWN | 45.26 |
| 14 | WELLS FARGO & COMPANY (XNYS:WFC) | WFC | FINANCIAL | -40.16% | DOWN | 43.90 |
Interesting list thanks, I see Nova Scotia bank not listed there, is that just because not big enough or simple wasnt in this core group for you?
I just grabbed a few of the more recognisable names,
| # | Name | TICKER | SECTOR | AVG | TREND | RSI |
|---|---|---|---|---|---|---|
| - | THE BANK OF NOVA SCOTIA (XNYS:BNS) | BNS | FINANCIAL | -8.29% | DOWN | 50.82 |
I did a screener for fun a while back looking for a company with P/E below 10 with a payout ratio less than 30% or something and a yield above 2% and it came up loads I never heard of, but Morgan Stanley came up and after I had a closer look I put it in my portfolio. Appears to be a great company to hold as a dividend growth investor
It is strange, off the bat all you will read on the front pages is how the Financial sector is eternally doomed, but when you look into it deeper, there are some gems for sure.
Reason why I’m staying away from buy banks… there is a lot of better or similar options out there 
I agree with @Vedran. Go for the Canadian banks or JPM for US
Yes, banking isnt going anywhere, it is and will change but they wont all just go away and new ones take their place. I am looking to add 1 or 2 bank/finance companies and 1 or 2 heath/pharma.