By Marc Lichtenfeld PacWest Bancorp (Nasdaq: PACW) is a small California bank with 76 branches.
The stock pays a $0.60 per share quarterly dividend, which comes out to a whopping 6.4% yield. That’s strong for a bank that isn’t considered particularly speculative.
This is an interesting situation because at face value, the dividend looks perilous.
The company cut the dividend in 2009 and 2010. SafetyNet Pro penalizes stocks with dividend cuts in the past 10 years.
Net interest income (NII), the measure that we use to analyze a bank’s ability to pay a dividend, rose for the past few years, but this year and next year NII …read more
