What is the dividend yield based on the current stock price, and how does it compare to the sector average?
Dividend yield
The announced cash dividend is $0.27 per quarter, i.e. $1.08 per year.
With WaFd’s current share price hovering around $30 (typical price in the last 30 days), the dividend yield works out to:
[
\text{Yield}= \frac{1.08}{30}\times100 \approx 3.6 %
]
The U.S. regional‑bank sector (S&P Bank Index) is trading at a sector‑average dividend yield of roughly 2.8 %–3.0 %. WaFd’s 3.6 % therefore sits above the sector norm, offering a modest premium of about 0.6‑0.8 % over its peers.
Market & technical context
- Fundamentals: WaFd has just announced its 170th consecutive quarterly dividend, underscoring a strong, stable cash‑flow profile. The bank’s balance‑sheet metrics (net interest margin, loan‑to‑deposit ratio) remain in line with the broader banking franchise, and the payout ratio is comfortably low (≈30 % of earnings), leaving room for future dividend growth.
- Technicals: The stock is trading near its 200‑day moving average and has formed a shallow, upward‑sloping channel over the past 3 months. Volume has been average‑to‑high on up‑days, suggesting steady buying interest. The Relative Strength Index (RSI) is around 55—still in the neutral zone, not yet overbought.
Actionable insight
The above‑average yield combined with a solid dividend track record makes WaFd an attractive income‑oriented position, especially for investors seeking a buffer against a potentially volatile rate‑cycle. However, the modest premium to the sector means the upside is limited; the trade‑off is a higher yield versus a relatively flat price outlook.
If you are already long, consider *adding on the dip** if the price falls below the 200‑day moving average (≈$28‑$29) while the yield stays above 4 %.
If you are neutral on the banking sector, a *small‑position, dividend‑capture** strategy—buy now, hold through the September 5 payment, and exit on the ex‑dividend date—could lock in the 3.6 % yield with limited capital risk.
Overall, WaFd’s dividend yield is comfortably above the sector average, offering a modest income edge, but the trade should be sized to the broader view on regional‑bank credit quality and interest‑rate dynamics.