Why Dividend Investors Must Watch Bank Stocks Now
The stock market moved generally higher on Thursday. However, many tech stocks took somewhat of a breather after strong gains in the recent past, allowing some other sectors of the market to lead Wall Street higher.
Investors paid close attention to the results of the Federal Reserve's stress test on banks. With favorable conclusions, many investors who look to financial stocks as sources of generous levels of dividend income are hopeful that they could see payout increases in the days to come. Here's more on what the results of the Fed stress tests were and why some bank stocks in particular are getting votes of confidence from the investing community on Thursday.
The Federal Reserve released the findings of its annual bank stress tests late Wednesday. The conclusion it drew was that the banking system in general and large banks in particular are well-situated to handle a severe recession, and that they would be able to maintain healthy levels of lending to both individuals and businesses under tough macroeconomic conditions.
Source Fool.com
