A Shocking Truth About Profitable Banks

By
A A A

It's a great time to be in the business of banking.  Just ask JP Morgan's Jamie Dimon or Goldman's Lloyd Blankfein.

Blankfein will make over $26 million this year alone. After JP Morgan lost $6 billion last year, the bank's board members voted to cut his pay in half - to "only" $11 million…

Last quarter, the American banking industry set a new all time profit record. U.S. banks turned a quarterly profit of $42 billion - a 23% increase from the previous year.

It's the bigbest banks that are profiting the most - much like CEO compensation. Banks with more than $10 billion in assets generated 82% of the banking sector profits. Those profits have sent bank shares considerably higher, and made them one of the best performing sectors of the stock market.

Look no further than the performance of the Financial Select Sector ( XLF ) ETF. The fund has $15 billion invested in the biggest bank stocks. And like most bank stocks, the ETF has handsomely beaten the S&P 500 with gains of 29% over the last year.

While big banks are making huge profits, they're not exactly being generous with their shareholders.  The ETF that I mentioned pays a dividend yield of just 1.6%.

Even after making huge profits, big banks are holding onto their profits rather than returning cash to shareholders.  Bank of America (NYSE: BOA) and Citigroup ( C ) currently pay paltry quarterly dividends of just $0.01. Prior to the housing bust and credit crisis, quarterly dividends were $0.64 at Bank of America and $0.54 at Citigroup.

While capital gains have been great for stocks in the financial sector, healthy dividends are sorely lacking.

That's why I've been looking outside of the "traditional" financial sector for unique income opportunities…

Through my research, I've discovered a way for you to claim your slice of the big bank profits. This is a new opportunity that was first introduced just seven years ago. And there is an opportunity for you to get in on the ground floor of this unique income secret.

The two biggest players in this sector have about $2 billion in loans on the books.  Compare this with $3.3 trillion in loans from America's five largest banks, and it's clear that this new lending industry is in its infancy.

Perhaps the best news is that this unique opportunity allows individuals like you and me to claim our share of the big bank profits. That's because this unique opportunity delivers amazing annual yields of 6 - 12% per year.  

I want to send you all the details on this game changing income investment opportunity. My special report titled The Bankers Secret provides all of the details, and shows you just how easy it is to profit from the banking boom and earn a healthy income along the way.

Just click here to learn more about this opportunity.   You won't want to miss out.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: C , XLF

Wyatt Investment Research

Wyatt Investment Research

More from Wyatt Investment Research:

Related Videos

Stocks

Referenced

74%
0%

Most Active by Volume

270,887,127
    $93.89 unch
225,243,115
  • $40.93 ▼ 2.74%
135,900,109
  • $47.52 ▲ 1.80%
89,467,924
  • $5.35 ▼ 1.11%
85,105,358
  • $16.95 ▼ 0.53%
80,748,539
  • $39.80 ▼ 4.21%
68,491,586
  • $3.57 ▼ 1.79%
62,097,356
  • $100.96 ▼ 0.82%
As of 9/19/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com