For regional banks, it is all about the region. Operating in a growing part of the country or dominating an area leads to loan growth and a hefty deposit base. It is that simple. For our latest Best Dividend Growth Stocks Model pick, its near monopoly in a select region of the country has allowed it to have a long operating history with years’ worth of dividend growth. Its recent streak has been quite impressive, surging 22% annually over the last three years!
That impressive growth comes from our pick’s operating area. The firm is one of the largest banks in Puerto Rico and the Virgin Islands. These U.S. territories remain a hotbed of activity and strong economic growth. With branches in sections of the country that feature strong immigration from these regions, our pick has continued to court multigenerational customers and keep the flow of capital going.
The end result is a top bank with strong loan demand and deposit base. Even better has been the recent upswing in net interest margins. This has boosted profits further for the bank. In the end, our pick represents a top choice for investors looking for a unique dividend growth stock.
In addition to our new regional bank pick, we’ve increased our position in a community bank, removed a basic materials firm, and decreased our position in a logistics shipper.
You can check out the Best Dividend Growth Stocks Model Portfolio to explore all the stocks.
