In Focus – VLY

It is easy to determine which stocks are the highest paying dividend stocks. It is more difficult (and more important) to determine which stocks are the best dividend stocks. In this report, we will explain why we feel that Valley Bancorp may be one of the highest paying dividend stocks available, but it is not one of the best stocks to buy now.

Background

Valley National Bancorp (VLY) is a holding company that operates through its subsidiary Valley National Bank. The bank operates in four segments: commercial lending, consumer lending, investment management, and corporate and other adjustments.

VLY is headquartered in Wayne, New Jersey. And it operates 211 branches in 24 counties throughout northern and central New Jersey, most of New York City, and the state of Florida.

Stock Fundamentals

Investors in VLY have lost money pretty steadily for at least 10 years (i.e. the price has gone down). And yet this company’s multiples are still not that low because the price multiples were high initially, and profits have only meandered. Profits have not risen strongly and steadily helping to pull the stock price up in the process.

We can see nothing in the financial statements to indicate anything has changed. This company is not remarkable on any of metrics we look at. And it does not seem to be taking any of the steps necessary to change. Furthermore, it does not seem to be showing any of the signs we like to see that would indicate that a company is going to do better in the future than it has in the past.

Value destroyers tend to continue to be value destroyers. And it is best to stay away from them until they prove otherwise (even if it means missing out on buying a stock at its rock-bottom price). VLY earns our lowest grade for its overall fundamentals, and we do not consider it one of the best stocks to buy now.

Stat Sheet – Valley National Bancorp 4/26/16

Ticker VLY
Industry  Natural Gas Utilities
Price $ 10.07
Market Cap  $ 2,344
Dividend Yield 4.37
Dividend/CFOp 0.637
Equity/Assets 0.096
Average Equity/Assets 0.090
Financial Strength Average
Growth Prospects Below Average
Beta 0.96
Price Volatility Below Average
Stock Fundamentals D

(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016.)

We cover many more stocks than just VLY. If you would like to see some of the research we make available on the other stocks we cover, click the link below.

Best Stocks to Buy Now

If you would like to see why we gravitate towards the best dividend stocks, click the link below.

Why the Best Dividend Stocks

Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.

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In Focus – VLY

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