The Best Stock in Hawaii: Bank of Hawaii Corp.
We analyzed publicly traded companies based in the Aloha State to identify the best stock in Hawaii to buy now.
We scoured the nation to identify the best stock in every state. Bank of Hawaii (symbol BOH) is the publicly traded company we picked in Alabama. The company headquarters is located in Honolulu.
A word of caution: Since we selected a single stock from each state (plus one from D.C), and choices in some states are sparse, a few of our picks are best suited to investors comfortable with a higher degree of risk. This is not necessarily one of our 51 favorite stocks in the entire U.S., in other words.
Bank of Hawaii by the Numbers
- Headquarters: Honolulu
- Share price: $80.70
- Market value: $3.4 billion
- Price-earnings ratio: 18
(Prices and data are as of June 22, 2017)
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
This year is looking warm and breezy for Bank of Hawaii, says Value Line analyst Kenneth DeFranco Jr. Rising interest rates and increased loan demand are boosting interest income for the bank. And a healing Hawaiian economy marked by elevated tourism, growth in new construction and strengthening median home prices bodes well for the bank, he says. He expects earnings per share to reach $4.70 by the end of 2018, a 5% annual growth rate from last year’s mark.
Bank of Hawaii is one of only two publicly traded banks in the state, and the islands' isolation, coupled with Hawaiians’ loyalty to names they trust, means that the bank faces little competition from large, mainland banks, says Craig Stone, who manages Virtus KAR Small-Cap Value Fund. Bank of Hawaii is a top-ten holding in the fund. Stone appreciates the company’s consistent (if not stratospheric) earnings growth rate, which helps the stock hold up well when the market tumbles, he says. During the 2007–09 bear market, Bank of Hawaii slid a cumulative 49%, compared with a 55% loss for the S&P 500 and 69% for the average U.S. regional bank. Over the past 15 years, shares in Bank of Hawaii returned an annualized 9.1%, outpacing its peers by four percentage points and the broad market by 0.7-point. After a 4% dividend hike in March, the stock currently yields 2.5%.
-
Tip: Ways to Track Your Credit Card RewardsHere are the best strategies and apps to help you stay current with your credit card rewards.
-
How New Investors Can Pick Their Perfect Portfolio, According to a ProSee what Cullen Roche has to say about finding your perfect portfolio as a new investor and his two-word answer on where he thinks the stock market is headed in 2026.
-
HNW Retirees: Don't Overlook The Benefits of Social SecurityWealthy retirees often overlook Social Security. But timed properly, it can drive tax efficiency, keep Medicare costs in check and strengthen your legacy.
-
If You'd Put $1,000 Into Lowe's Stock 20 Years Ago, Here's What You'd Have TodayLowe's stock has delivered disappointing returns recently, but it's been a great holding for truly patient investors.
-
If You'd Put $1,000 Into 3M Stock 20 Years Ago, Here's What You'd Have TodayMMM stock has been a pit of despair for truly long-term shareholders.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have TodayBank of America stock has been a massive buy-and-hold bust.
-
If You'd Put $1,000 Into Oracle Stock 20 Years Ago, Here's What You'd Have TodayORCL Oracle stock has been an outstanding buy-and-hold bet for decades.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
