Regional Rebound: Regional Bank ETFs Still Have Potential

Just this week, two KRE holdings – Cullen Frost Bankers (NYSE: CFR) and Regions Financial (NYSE: RF) – boosted payouts.

“With the exception of one bank, all banks within KRE passed the Fed’s recent stress testing exercise, which means that instead of raising more capital to meet regulatory requirements, they can use more of their capital for dividends, share repurchases and investment into their businesses. Strong capital levels help ensure that banks have the ability to lend to households and businesses and to continue to meet their financial obligations,” said Mazza. [Zions Not an Issue for These ETFs]

KRE’s annual dividend has averaged 51.3 cents per share over the past three years, up about 50% from ETF’s 2010 payout, according to State Street data.

SPDR S&P Regional Banking ETF


Tom Lydon’s clients own shares of KRE.