This Dividend Beast Could Be About to Get a Big Catalyst
In April 2021, the multifamily lender and regional bank New York Community Bancorp (NYSE: NYCB) said it would buy Michigan-based Flagstar Bancorp (NYSE: FBC) in an all-stock acquisition. But since then, NYCB and Flagstar have had to extend their merger agreement as the two await regulatory approval. The new merger agreement runs until Oct. 31, leaving NYCB with about three months to obtain regulatory approval and consummate the merger.
NYCB's shares have a strong annual dividend yield, currently 6.6%, but approval of the acquisition could be just what the bank needs to turn around the stock. Here's why.
Since Thomas Cangemi took over as chief executive officer of NYCB at the beginning of 2021, his plan has been to push the bank away from its outdated thrift model, which relies on fixed-rate lending and higher-cost funding, and more toward becoming a modern commercial bank. After all, NYCB's stock is down about 20% over the past five years, so shareholders are not exactly happy.
Source Fool.com
