5 Best Regional Bank Dividend Stocks to Buy

In this article, we discuss 5 best regional bank dividend stocks. If you want to read our detailed analysis of the banking sector and its performance over the years, go directly to read 10 Best Regional Bank Dividend Stocks to Buy. 

5. Comerica Incorporated (NYSE:CMA)

Number of Hedge Fund Holders: 46

Comerica Incorporated (NYSE:CMA) is an American financial services company that provides a wide range of related services and products, including services in commercial and retail banking. The company currently offers a quarterly dividend of $0.71 per share, having raised it by 4% in March this year. As of July 26, the stock has a dividend yield of 5.31%.

Comerica Incorporated (NYSE:CMA) was a popular stock among elite money managers tracked by Insider Monkey as of Q1 2023. 46 hedge funds owned stakes in the company in Q1, up from 37 a quarter earlier. These stakes have a consolidated value of over $691.7 million.

Third Avenue Management mentioned Comerica Incorporated (NYSE:CMA) in its Q1 2023 investor letter. Here is what the firm has to say:

The largest detractors from Fund performance during the quarter included two banks, Comerica Incorporated (NYSE:CMA) and Deutsche Bank. As it relates to the Fund specifically, events within U.S. banking applied most directly to our investment in Comerica, a U.S. super-regional that does have a large portion of corporate deposits and is not classified as a globally systemically important bank (“G-SIB”), which means it has not recognized certain mark-to-market securities losses in its regulatory capital. Comerica was a 2.6% position at the beginning of the quarter, prior to a roughly 34% stock price decline during the quarter. (Click here to read the full text)

4. Truist Financial Corporation (NYSE:TFC)

Number of Hedge Fund Holders: 48

Truist Financial Corporation (NYSE:TFC) is next on our list of the best dividend stocks from the regional bank sector. On July 25, the announced its quarterly dividend of $0.52 per share, which remained unchanged from its previous dividend. The company’s shares offer a dividend yield of 6.24%, as of July 26. The company has been regularly paying dividends to shareholders for a long time now. As of Q2 2023, its dividend payout ratio came in at 56%.

In the second quarter of 2023, Truist Financial Corporation (NYSE:TFC) generated roughly $6 billion in revenues, which showed a 5.1% increase from the same period last year. Its net interest income for the quarter stood at $2.29 billion, growing slightly from $2.25 billion in Q2 2022.

As of the close of Q1 2023, 48 hedge funds in Insider Monkey’s database reported having stakes in Truist Financial Corporation (NYSE:TFC), up from 44 in the preceding quarter. These stakes are collectively worth over $1 billion.

3. U.S. Bancorp (NYSE:USB)

Number of Hedge Fund Holders: 48

An American bank holding company, U.S. Bancorp (NYSE:USB) has been raising its dividends consistently for the past 12 years. On June 13, it declared a quarterly dividend of $0.48 per share, which was in line with its previous dividend. The stock’s dividend yield on July 26 came in at 4.94%.

At the end of Q1 2023, U.S. Bancorp (NYSE:USB) was a part of 48 hedge fund portfolios, as per Insider Monkey’s database. The collective value of stakes owned by these hedge funds is over $742.6 million.

Coho Partners mentioned U.S. Bancorp (NYSE:USB) in its Q2 2023 investor letter. Here is what the firm has to say:

“U.S. Bancorp (USB) has a well-deserved reputation of being a high quality, conservative lender and historically the company has performed well versus peers during challenging times. We believe the near-term pressure on USB’s share price stems from the collapse of Silicon Valley Bank, Signature Bank, and First Republic. USB has been caught up in the regional bank issues, but we believe it has a bright future. Since our initial purchase during the pandemic, USB has performed in line or ahead of our expectation. We were also very positive on the company’s decision to acquire Union Bank, which operated primarily in California, a market in which USB had limited exposure. Union Bank’s customers were primarily small businesses, where USB saw potential to leverage its cash management and payment offerings to gain meaningful revenue growth with above average margins. The conversion of Union Bank to USB programs went without a glitch.

We believe USB is well capitalized but with the Union Bank deal, USB will be subject to additional capital requirements, which will prevent buybacks in the near term. However, we do anticipate a modest dividend increase this December but, in the meantime, USB trades at less than 8x trailing earnings with a 5.8% dividend yield.”

2. The PNC Financial Services Group, Inc. (NYSE:PNC)

Number of Hedge Fund Holders: 55

The PNC Financial Services Group, Inc. (NYSE:PNC) is an American bank holding company, providing related financial services to its consumers. On July 3, the company hiked its quarterly dividend by 3% to $1.55 per share. Through this increase, the company stretched its dividend growth streak to 13 years, which makes it one of the best dividend stocks on our list. As of July 26, the stock offers a dividend yield of 4.56%.

At the end of March 31, 55 hedge funds out of 943 owned stakes in The PNC Financial Services Group, Inc. (NYSE:PNC), up from 49 in the previous quarter, as shown by Insider Monkey’s database. The combined value of these stakes is more than $807 million.

1. First Horizon Corporation (NYSE:FHN)

Number of Hedge Fund Holders: 60

First Horizon Corporation (NYSE:FHN) tops our list of the best dividend stocks in the regional bank industry. The number of hedge funds tracked by Insider Monkey with investments in the company grew to 60 in Q1 2023, from 49 in the preceding quarter. The stakes owned by these funds are worth over $1.1 billion in total.

First Horizon Corporation (NYSE:FHN) has been making regular dividend payments to shareholders since 2011. It currently pays a quarterly dividend of $0.15 per share for a dividend yield of 4.62%, as of July 26.

You can also take a look at 11 Cheap Lithium Stocks To Buy and 10 Sustainable Investing Stocks Billionaires Are Loading Up On

Follow Insider Monkey on Twitter