 |
|
|
It's financial institutions galore these |
|
|
days. We have found some solid ones. |
|
|
Released on Monday, October 24, 2011, 8:00 AM ET
Pittsburgh, PA (SpeculatingStocks) - It’s financial institutions galore these days, from tacking on fees to loading up on commissions, they seem to be finding every single sort of way to eat away at your pocket book, which isn’t much safer than your bank account.
So how do you fight back? No, you don’t go shouting at the bank teller because your institution charged you a new fandangle “account management fee”, you make sure that fee comes back to you, by owning a part of the company.
Banks these days are getting some pretty bad raps, from BofA to trading institutions like Goldman Sachs. But the truth is they are stable companies who actually turn a profit.
Although Goldman Sachs today, October 18th, 2011, released less than spectacular quarterly earnings, it has been declaring a dividend to its stock holders totaling a dividend yield of about 1.37% on an annual basis.
Goldman Sachs Group, Inc. (NYSE:GS) is currently trading at $102.09 per share (4:00 PM EDT, October 21st, 2011) a rather low price considering the stock’s 52-week range of $84.27 per share to $175.34 per share. However, amid recent degrading remarks about GS’s ability to produce earnings the stock has a decent EPS of about $10.18, which is not half bad even for a company as large as GS with a market cap over $51 billion.
Other institutions that top the list are Morgan Stanley (NYSE:MS) and JP Morgan Chase (NYSE:JPM), who are trading at $17.02 per share (4:00 PM EDT, October 21st, 2011) and $33.42 per share (4:00 PM EDT, October 21st, 2011) respectively. So if you can’t swing the still rather hefty price of $102.09 per share of GS, then maybe these two will float in your boat.
The interesting thing to note about all of these firms is that they are market linked. Baring subtle variations, they tend to move together and often in the same relative magnitude. This can be attributed to the fact that these are mega capitalization companies, and places to put money if volatility in the market is moving to high for your liking. These companies tend to run a beta around 1.4 or 1.2, so funneling a portion of your portfolio into a diversified group of large banking institutions with proven histories will pull down the over-all volatility of your portfolio.
Find more stocks on the SpeculatingStocks homepage.
Comments:
