streetTRACKS KBW Regional Bank ETF Pays a Stout Dividend

streetTRACKS KBW Regional Bank ETF (KRE), an exchange-traded fund that holds 50 regional bank stocks, on April 18, 2008 closed at $35.38 to continue an upside bounce. KRE has made two prior upside moves off lows at around $32, only to have them fail. Whether the current bounce continues depends, in large part, to the overall direction of the broad market.

Meanwhile, KRE offers a dividend yield 5.65 percent, which gives investors a cushion during the current uncertainty.

The fund's top five holdings by market capitalization are: Hudson City Bancorp (HCBK), UnionBanCal (UB), Sovereign Bancorp (SOV) Synovu Financial (SNV) and Associated Banc-Corp (ASBC).

The top five holdings by fund weight are F.N.B. Corporation (FNB), Westamerica Bancorporation (WABC), BancorpSouth (BXS), Commerce Bancshares(CBSH) and First Commonwealth Financial (FCF).

I (RAH) do not own KRE, but I plan to buy it on price dips.

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Posted April 20, 2008.