June Top Financial Dividend Stock
Financial service companies’ profitability tends to be tied to the economic cycle. 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 great dividend yield of 5.93% and the company currently pays out 83.76% of its profits as dividends , with analysts expecting this ratio in three years to be 84.19%. MYS’s dividend alone will put you better off than your bank interest, but the company’s yield isn’t only higher than the low risk savings rate. It’s also amongst the market’s top dividend payers. More detail on MyState here.
Carlton Investments Limited (ASX:CIN)
CIN has a decent dividend yield of 3.58% and the company has a payout ratio of 77.14% . CIN’s DPS have risen to AU$1.16 from AU$0.63 over a 10 year period. Much to the delight of shareholders, the company has not missed a payment during this time. The company has averaged an annual earnings growth rate of 5.47% over the past five years. More on Carlton Investments here.
Perpetual Limited (ASX:PPT)
PPT has an alluring dividend yield of 7.00% and distributes 88.90% of its earnings to shareholders as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from AU$0.038 to AU$2.70. Dig deeper into Perpetual 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.
