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. As a long term investor, I favour these financial stocks with great dividend payments that continues to add value to my portfolio.
The Travelers Companies, Inc. (NYSE:TRV)
TRV has a nice dividend yield of 2.16% and has a payout ratio of 31.84% . TRV’s last dividend payment was $2.88, up from it’s payment 10 years ago of $1.16. The company has been a reliable payer too, not missing a payment during this time.
Aflac Incorporated (NYSE:AFL)
AFL has a solid dividend yield of 2.14% and their payout ratio stands at 24.80% , with analysts expecting this ratio in three years to be 26.72%. The company’s dividends per share have risen from $0.82 to $1.8 since it started paying dividends 10 years ago. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. When we compare Aflac’s PE ratio with its industry, the company appears favorable. The US Insurance industry’s average ratio of 15.8 is above that of Aflac’s (12.2).
Ameriprise Financial, Inc. (NYSE:AMP)
AMP has a nice dividend yield of 2.11% and is distributing 29.10% of earnings as dividends . AMP’s last dividend payment was $3.32, up from it’s payment 10 years ago of $0.6. The company has been a dependable payer too, not missing a payment in this 10 year period.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our 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.