Banks’ dividends could be at risk.
Banking stocks tumbled Friday after thehighlighted potential vulnerabilities in the sector. on financial institutions through the third quarter after its recent stress tests. Banks are expected to announce any changes to their dividends after the bell Monday.
Nancy Tengler, chief investment officer at Laffer Tengler Investments, saidcould be one of the major financial companies best equipped to weather the and economic slowdown.
“This is a company that gets 96% of their revenue from noninterest income, so that’s a benefit in a flat to low interest rate environment,” Tengler said Friday on CNBC’s “.” “Long term we like this story better than say a that gets 20% of revenue from noninterest income, and is exposed to many of the spaces — autos and mortgages, autos in particular – that we don’t want to be part of.”
Goldman Sachs has fallen 18% this year, while Wells Fargo has plummeted 53%.
“From a valuation standpoint [Goldman is]…