Bank Dividends For 2013

CorpBanca (NYSE:BCA) With a market cap of almost $4 billion, CorpBanca engages in typical banking businesses such as checking and savings accounts as well as commercial and residential loans. At the end of last year, the company had almost 120 branches throughout Chile.

Those are nice statistics, but the real allure with CorpBanca is the dividend – both the yield and the growth. Shares of CorpBanca currently yield 6.1 percent. More importantly, the dividend paid by Chiles fourth-largest bank has surged fivefold since 2006.

CorpBanca is also worth a look because of its home in Chile. Sure, Chile can be viewed as “lower beta” than other emerging markets, but the real story as it pertains to CorpBanca is the fact that, because Chile does not have much in the way of public pensions, Chileans are voracious savers. In fact, the Chilean government forces public workers to save and that is a good thing for Chilean banks.

Oriental Financial Group Inc. (NYSE:OFG) The smallest member of this list by market value, Oriental Financial’s market cap is just $578 million. That diminutive status does not mean investors should stay away. Actually, among small-cap banks, Oriental Financial offers a solid story that has not gotten much attention to this point.

The company, which primarily does business in Puerto Rico, has been home to far more insider buying than selling in recent months, indicating management is bullish on the shares. Why not? Trading just below $13 means the stock goes for just two-thirds of its book value.

The yield is not impressive at 1.9 percent and that might be by virtue of a dividend cut during the financial crisis. However, Oriental Financial has raised its dividend twice since 2009.

This article was originally written by Gordon Wilcox, and posted on Benzinga.