The fortunes of financial services companies often follow that of the broader economy. These companies provide services ranging from consumer finance to investment banking. During downturns, financial services companies tend to be hit the hardest as net interest margins shrink and credit losses grows. However, during prosperous times, they report robust profits and many pay attractive dividends. If you’re a buy-and-hold investor, these healthy dividend stocks in the financial industry can generously contribute to your monthly portfolio income.
Heritage Commerce Corp (NASDAQ:HTBK)
HTBK has a wholesome dividend yield of 2.63% and pays out 63.95% of its profit as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from US$0.32 to US$0.44. Over the next 12 months, analysts are predicting double digit earnings growth of 53.48%. Continue research on Heritage Commerce here.
Camden National Corporation (NASDAQ:CAC)
CAC has a solid dividend yield of 2.23% and the company currently pays out 35.48% of its profits as dividends . CAC’s DPS have risen to US$1.00 from US$0.67 over a 10 year period. The company has been a dependable payer too, not missing a payment in this 10 year period. If analysts predictions are right, Camden National has some strong earnings growth on the short-term horizon with an expected increase in EPS of 72.87% over the next 12 months. Continue research on Camden National here.
The First of Long Island Corporation (NASDAQ:FLIC)
FLIC has a solid dividend yield of 2.15% and their current payout ratio is 40.14% . FLIC has increased its dividend from US$0.27 to US$0.60 over the past 10 years. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. Dig deeper into First of Long Island here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.