LSE Top Financial Dividend Stocks – City of London Investment Group And More
The fortunes of financial services companies often follow that of the broader 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. Here are my top dividend stocks in the financial industry that could be valuable additions to your current holdings.
City of London Investment Group PLC (LSE:CLIG)
CLIG has a large dividend yield of 5.93% and is paying out 65.93% of profits as dividends , and analysts are expecting a 69.01% payout ratio in the next three years. Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from UK£0.18 to UK£0.26. City of London Investment Group’s earnings per share growth of 31.93% outpaced the gb capital markets industry’s 24.33% average growth rate over the last year. Dig deeper into City of London Investment Group here.
H&T Group Plc (AIM:HAT)
HAT has a good-sized dividend yield of 2.66% and is currently distributing 36.91% of profits to shareholders . While there’s been some level of instability in the yield, HAT has overall increased DPS over a 10 year period from UK£0.032 to UK£0.092. H&T Group’s earnings per share growth of 50.69% over the past 12 months outpaced the gb consumer finance industry’s average growth rate of 22.25%. More on H&T Group here.
International Personal Finance Plc (LSE:IPF)
IPF has a large dividend yield of 6.48% and is currently distributing 37.75% of profits to shareholders , with the expected payout in three years being 38.81%. The company’s DPS have increased from UK£0.048 to UK£0.12 over the last 10 years. The company has been a reliable payer too, not missing a payment during this time. The company has also had a strong past 12 months, reporting a double digit EPS growth of 23.10%. Interested in International Personal Finance? Find out more 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.
