Access National, Mercantile Bank, and EMC Insurance Group are financial services stocks that generally perform in-line with the economy. Firms in this sector offer services ranging from investment banking to consumer finance. 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.
Access National Corporation (NASDAQ:ANCX)
ANCX has a decent dividend yield of 2.06% and pays 56.58% of it’s earnings as dividends . The company’s dividends per share have risen from $0.04 to $0.6 over the last 10 years. The company has been a dependable payer too, not missing a payment in this 10 year period. Over the next 12 months, analysts are predicting double digit earnings growth of 64.73%. More on Access National here.
Mercantile Bank Corporation (NASDAQ:MBWM)
MBWM has a solid dividend yield of 2.46% and their current payout ratio is 38.99% . Despite some volatility in the yield, DPS has risen in the last 10 years from $0.6 to $0.88. More detail on Mercantile Bank here.
EMC Insurance Group Inc. (NASDAQ:EMCI)
EMCI has a decent dividend yield of 3.11% and pays out 51.98% of its profit as dividends . In the case of EMCI, they have increased their dividend per share from $0.48 to $0.88 so in the past 10 years. Much to the delight of shareholders, the company has not missed a payment during this time. It should comfort potential investors that the company isn’t expensive when we look at its PE ratio compared to the US Insurance industry. EMC Insurance Group’s PE ratio is 17.5 while its industry average is 17.7. Dig deeper into EMC Insurance Group here.
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.