Best Financial Dividend Paying Stock in May
The fortunes of financial services companies often follow that of the broader economy. These companies provide services ranging from consumer finance to investment banking. Downturns can hit financial services companies hard as net interest margins shrink and credit losses grow. However, in good times, they report steady profits and many pay attractive dividends. Below is my list of huge dividend-paying stocks in the financial industry that continues to add value to my portfolio holdings.
MyState Limited (ASX:MYS)
MYS has a substantial dividend yield of 6.00% and pays out 83.76% of its profit as dividends , and analysts are expecting a 84.19% payout ratio in the next three years. MYS is among the markets top 25% of dividend payers, which is certainly enticing for interested investors. Interested in MyState? Find out more here.
Scottish Pacific Group Limited (ASX:SCO)
SCO has a juicy dividend yield of 5.46% and is currently distributing 82.30% of profits to shareholders . Besides the potential capital gains, SCO’s yield alone is better than the low risk savings rate. Plus, a 5.46% yield places it amidst the market’s top dividend payers. Scottish Pacific Group’s earnings per share growth of 486.62% outpaced the au consumer finance industry’s 19.43% average growth rate over the last year. Continue research on Scottish Pacific Group here.
Carlton Investments Limited (ASX:CIN)
CIN has a nice dividend yield of 3.62% and is currently distributing 77.14% of profits to shareholders . In the last 10 years, shareholders would have been happy to see the company increase its dividend from AU$0.63 to AU$1.16. The company has been a reliable payer too, not missing a payment during this time. Investors will be glad to know the company has maintained a positive earnings growth over the last few years. It’s eps growth rate over the past five years has been 5.47%. Interested in Carlton Investments? Find out more 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.
