Don’t Expect Dividends From Banking Sector: Analyst Tells CNBC (BNS, MCD)

Major corporations including Time Warner (NYSE: TWX) and Pitney Bowes (NYSE: PBI) have increased their dividends.

Talking with CNBC, Matt McCormick, banking analyst and portfolio manager with Bahl & Gaynor Investments Counsel, opined that the banking sector is unlikely to follow suit. According to him, various political and regulatory issues such as higher taxes and other rules have caused the CEO and CFOs to “husband their cash”.

He, therefore, has advised the dividend-keen investors not to invest in the banking sector. However, there is an exception to the rule and the analyst picked Scotiabank (NYSE: BNS) as his favorite stock. He also liked McDonald’s (NYSE: MCD).