Is New York Community Bancorp a Smart Dividend Stock to Invest In?

NYSE: NYCB | New York Community Bancorp, Inc.  News, Ratings, and Charts

NYCB – Stocks that offer good dividend yields usually attract investors’ attention amid market volatility. New York Community Bancorp (NYCB) pays a good dividend, but given the bank’s lower-than-industry profitability, is it a smart dividend stock to bet on now? Read on to learn our view.

New York Community Bancorp, Inc. (NYCB) is a bank holding company for New York Community Bank. Westbury, N.Y.-based NYCB provides multi-family-home loans in New York City, focusing on non-luxury residential apartment buildings with rent-regulated units that feature lower rents than non-regulated units. In addition to multi-family-home loans, it originates commercial real estate loans, specialty finance loans and leases, and, to a much lesser extent, acquisition, development, construction, and commercial and industrial loans.

The company paid a $0.17 quarterly dividend on Feb. 17, 2022. NYCB’s four-year average dividend yield is 6.21%, while its current dividend translates to a 6.63% yield.

The stock has declined 23.5% in price over the past six months and 18.5% over the past year to close the last trading session at $10.25. It is currently trading 28.4% below its 52-week high of $14.33, which it hit on Oct. 22, 2021.

Here is what could influence NYCB’s performance in the coming months:

Underwhelming Valuation

In terms of forward non-GAAP P/E, NYCB’s 7.50x is 31.7% lower than the 10.98x industry average. And its 0.65x forward non-GAAP PEG is 32.3% lower than the 0.96x industry average. Also, the stock’s 0.74x forward P/B is 33.1% lower than the 1.10x industry average.

Robust Financials

NYCB’s total revenues increased 16% year-over-year to $1.35 billion for its fiscal year ended Dec. 31, 2021. The company’s non-GAAP net income available to its common shareholders increased 42.6% year-over-year to $585 million. Also, its non-GAAP EPS came in at $1.24, representing a 42.5%increase year-over-year.

Favorable Analyst Estimates

Analysts expect NYCB’s revenues to grow 44% in its fiscal year 2022 and 21.4% in its fiscal 2023. Its EPS for fiscal 2022 and 2023 is expected to grow 12.1% and 11.5% year-over-year, respectively.

Lower-Than-Industry Profitability

In terms of trailing-12-month ROCE, NYCB’s 8.63% is 32.4% lower than the 12.78% industry average Its 1% trailing-12-month ROA is 25.4% lower than the 1.34% industry average.

POWR Ratings Reflect Uncertainty

NYCB has an overall C rating, which equates to a Neutral in our POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. NYCB has a D grade for Quality, which is in sync with its 0.30% trailing-12-month Capex/Sales, which is 81% lower than the 1.57% industry average.

NYCB is ranked #46 of 61 stocks in the Northeast Regional Banks industry. Click here to access NYCB’s Growth, Value, Momentum, Stability, and sentiment ratings.

Bottom Line

NYCB is currently trading below its $11.28 and $12.11 respective 50-day and 200-day moving averages, indicating a downtrend. Although analysts expect its EPS and revenue to grow this year and beyond, its lower-than-industry profitability makes its near-term prospects uncertain. Thus, it could be wise to wait for a better entry point in the stock.

How Does New York Community Bancorp, Inc. (NYCB) Stack Up Against its Peers?

While NYCB has an overall POWR C Rating, one might want to consider investing in the following Northeast Regional Banks stocks with a B (Buy) rating: BCB Bancorp, Inc. (BCBP) and Western New England Bancorp, Inc. (WNEB).

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year

Top 10 Stocks for 2022

REVISED: 2022 Stock Market Outlook

7 SEVERELY Undervalued Stocks


NYCB shares were trading at $10.13 per share on Thursday morning, down $0.12 (-1.17%). Year-to-date, NYCB has declined -15.79%, versus a -5.56% rise in the benchmark S&P 500 index during the same period.


About the Author: Dipanjan Banchur


Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
NYCBGet RatingGet RatingGet Rating
BCBPGet RatingGet RatingGet Rating
WNEBGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Does Trump Change Stock Market Outlook?

The rally of the S&P 500 (SPY) after the election gives a sense that investors are happy that Trump was elected. But perhaps there is more to this story than meets the eye. That’s why Steve Reitmeister shares his updated market outlook taking into account the pros and cons of Trumps proposed new policies. This comes with a preview of his top 11 stocks to buy now.

3 Streaming Stocks Benefiting from Cord-Cutting Trends

As streaming continues to dominate the digital entertainment landscape, the global streaming market presents a lucrative investment opportunity. So, it could be ideal to invest in fundamentally solid streaming stocks Netflix (NFLX), Walt Disney (DIS), and Roku (ROKU). Read further...

3 Gold Stocks to Buy as Safe-Haven Demand Grows

Gold is a stable investment now due to its role as a safe-haven asset during economic uncertainty, rising demand, industrial use, and growth, bolstered by central bank purchases and interest rate cuts. Therefore, investors should consider investing in top gold stocks such as Newmont (NEM), Barrick Gold (GOLD), and Agnico Eagle Mines (AEM). Read more...

3 AI Stocks Transforming Industries and Driving Future Growth

With rapid digitalization, rapid adoption, and development, as well as surging demand, the AI market is on the rise. Amid this backdrop, investors could buy fundamentally solid AI stocks NVIDIA Corporation (NVDA), Microsoft (MSFT), and Meta Platforms (META) poised for substantial gains. Continue reading...

Updated Stock Market Expectations

The S&P 500 (SPY) has already reached an impressive goal of hitting 6,000. Yet you can see how much shares are struggling now up against this resistance. Steve Reitmeister shares his views on what comes next for the market and his top 10 stocks to stay on the right side of the action.

Read More Stories

More New York Community Bancorp, Inc. (NYCB) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All NYCB News