Money in the Banks

In addition to tracking my stocks and catching up on news and research, I spend a lot of time during the day talking about what's going on in the markets and the world. I usually talk with other Real Money and Real Money Pro contributors, like Tim Collins, Bob Byrne and others. The curmudgeonly option trader and the voodoo prof usually swing by in the interwebs to share thoughts and ideas. Most of the conversations center on really important stuff like baseball and BBQ, but occasionally something market related pops up.

Tuesday there was a discussion of using bank stocks in an income portfolio. This is an idea that is not getting much attention as investors seem to view financial stocks as a trading vehicle these days. The truth is that the bank stocks will be one of, if not the leading, source of dividend growth over the next decade, and income investors should include them in a diversified portfolio mix. During the credit crunch, many banks cut or eliminated dividend payments to conserve capital. Now, as credit problems slowly fade into the rear view, we will see them reinstated and raised by many financial institutions. When the economy is finally back on track, we should see double-digit increases for years to come....484 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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