SOURCE: The Bedford Report

The Bedford Report

March 15, 2011 07:35 ET

Citigroup & PNC Financial - Alternative Dividend Strategies

The Bedford Report Provides Analyst Research on Citigroup & PNC Financial

NEW YORK, NY--(Marketwire - March 15, 2011) - Investors are once again looking to major US banks as safe companies that will post steady profits and hopefully begin providing steady dividends. While certain major banks have said dividend increases are a top priority, others argue that now is not the right time to return cash to shareholders. The Bedford Report examines the outlook for companies in the Financial Sector and provides research reports on Citigroup, Inc. (NYSE: C) and PNC Financial Services, Inc. (NYSE: PNC). Access to the full company reports can be found at:

In the coming weeks, the Federal Reserve is expected to disclose the results of its latest round of stress tests. The crucial points of the tests are banks' ability to survive another recession as well as meeting regulatory capital requirements. Due to the recession, the Federal Reserve had barred major banks from increasing their dividends. As many of these banks repaid the bailout money, they began pressuring the regulators to let them restore their dividends.

Most of the largest banks are targeting a dividend increase in 2011 or 2012 to roughly 30 percent of earnings.

The Bedford Report releases regular market updates on the Financial Sector so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous analyst reports and industry newsletters.

Citigroup's CEO Vikram Pandit said that "2012 is the right year for us to return capital." Pandit added that Citi wants "to make sure that we are in exactly the right place on Basel III." Under Basel III, only if a bank operating in a steady economic environment maintains a Tier 1 capital ratio of 12% would it be allowed to pay or increase common dividends.

PNC CEO James Rohr believes his company is "in a solid position to deliver greater shareholder value this year." The company's CFO Richard Johnson added that the bank is well capitalized "and should be when the (Basel 3) rules go into effect in 2013."

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at

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