Investors may want to consider regional banks, as some offer dividend yields higher than 4%, according to Janney Montgomery Scott. The Federal Reserve is expected to cut interest rates at its upcoming meeting, which could decrease yields on short-term Treasurys and other investments. Analysts at Janney found regional banks with high dividend yields compared to Treasury notes. These banks have been consistent dividend payers and have even increased dividends since 2021. However, investors should be cautious as banks can reduce dividends if their financial health weakens. Some of the regional bank stocks highlighted by Janney include Regions Financial and KeyCorp. Regions Financial has seen a 20% increase in its stock price in 2024, with a dividend yield of 4.3%. KeyCorp, on the other hand, has a dividend yield of 4.9% and received a strategic investment from the Bank of Nova Scotia. Huntington Bancshares and Truist Financial are also on Janney’s list, both offering high dividend yields and seeing positive stock performance in 2024.
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