Great Financial Dividend Stocks For Every Portfolio
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. Here are my top dividend stocks in the financial industry that could be valuable additions to your current holdings.
Emperor Capital Group Limited (SEHK:717)
717 has a large dividend yield of 4.98% and has a payout ratio of 29.11% . Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from HK$0.02 to HK$0.03. Emperor Capital Group’s earnings growth over the past 12 months has exceeded the hk capital markets industry, with the company reporting an EPS growth of 25.41% while the industry totaled 15.10%. Dig deeper into Emperor Capital Group here.
Allied Group Limited (SEHK:373)
373 has a juicy dividend yield of 5.17% and is currently distributing 13.62% of profits to shareholders . Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from HK$0.75 to HK$2.50 over the past 10 years. It should comfort potential investors that the company isn’t expensive when we look at its PE ratio compared to the HK Consumer Finance industry. Allied Group’s PE ratio is 2.6 while its industry average is 7.6. Dig deeper into Allied Group here.
China Huarong Asset Management Co., Ltd. (SEHK:2799)
2799 has a sumptuous dividend yield of 7.63% and the company currently pays out 30.01% of its profits as dividends . Besides capital gain prospects, just the yield is higher than the low risk savings rate – enticing for investors with goals of beating their bank accounts. Plus, a 7.63% yield places it amidst the market’s top dividend payers. Dig deeper into China Huarong Asset Management 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.
