HCBK (MM)

Savings & Loan stocks have been on the downswing since the Federal Reserve announced that it will push long term interest rates lower. On the upside, "Operation Twist" is designed to spur loan growth -- something banks have struggled to regain in the aftermath of the recession. The Paragon Report examines investing opportunities in the Savings & Loan Industry and provides equity research on Hudson City Bancorp, Inc. (NASDAQ: HCBK) and People's United Financial, Inc. (NASDAQ: PBCT). Access to the full company reports can be found at:

www.paragonreport.com/HCBK

www.paragonreport.com/PBCT

In its statement, the Fed noted that the economy is growing slowly, unemployment is high and housing remains in a prolonged slump. The central bank said in a statement that operation twist was aimed at reducing the cost of borrowing for businesses and consumers, including the cost of mortgage loans. It hopes that the lower rates will encourage companies to build new factories and hire more workers, and consumers to start spending again on homes and cars and clothes and vacations.

In recent quarters, banks have begun to post improved credit quality. More thorough and cautious credit checks have led to fewer delinquent loans and greater financial stability. As such, banks are setting aside less money to cover bad loans, and some are seeing loan losses recede. While credit quality improved, the high unemployment rate has been damaging to banks' long term loan growth.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the Savings & Loan Industry register with us free at www.paragonreport.com and get exclusive access to our numerous stock reports and industry newsletters.

Despite new government regulations and consistently low interest rates, companies in the Savings & Loan Industry continue to pay some of the largest dividends in the Financial Sector. With the VIX volatility index pushing towards record levels over the last month, long term investors have turned their attention to safe haven plays. Investors usually count on dividend paying stocks during hectic times in the market, believing in the company's security and real earnings power.

People's United Financial pays an annual dividend of 63 cents for a yield of 5.5 percent. Hudson City Bancorp pays an annual dividend of 32 cents for a yield of approximately 5.7 percent.

The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon 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 http://www.paragonreport.com/disclaimer.

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