Financial service companies’ profitability tends to be tied to the economic cycle. Firms in this sector offer services ranging from investment banking to consumer finance. 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. If you’re a long term investor, these high-dividend financial stocks can boost your monthly portfolio income.
United Financial Bancorp, Inc. (NASDAQ:UBNK)
UBNK has a wholesome dividend yield of 2.97% and has a payout ratio of 44.19% . UBNK’s DPS have risen to US$0.48 from US$0.13 over a 10 year period. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. Dig deeper into United Financial Bancorp here.
Stock Yards Bancorp, Inc. (NASDAQ:SYBT)
SYBT has a sizeable dividend yield of 2.57% and their current payout ratio is 47.38% . SYBT’s dividends have seen an increase over the past 10 years, with payments increasing from US$0.45 to US$0.92 in that time. Much to the delight of shareholders, the company has not missed a payment during this time. Over the next 12 months, analysts are predicting double digit earnings growth of 34.30%. Continue research on Stock Yards Bancorp here.
Community Trust Bancorp, Inc. (NASDAQ:CTBI)
CTBI has a decent dividend yield of 2.84% and is distributing 44.51% of earnings as dividends . In the last 10 years, shareholders would have been happy to see the company increase its dividend from US$1.05 to US$1.32. They have been consistent too, not missing a payment during this 10 year period. Interested in Community Trust Bancorp? Find out more 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.