The fortunes of financial services companies often follow that of the broader economy. These companies provide services ranging from consumer finance to investment banking. 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. I’ve made a list of other value-adding dividend-paying stocks in the financial industry for you to consider for your investment portfolio.
First Financial Corporation (NASDAQ:THFF)
THFF has a nice dividend yield of 2.36% and the company currently pays out 43.03% of its profits as dividends . The company’s dividends per share have risen from US$0.88 to US$1.02 over the last 10 years. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. If analysts predictions are right, First Financial has some strong earnings growth on the short-term horizon with an expected increase in EPS of 44.25% over the next 12 months. More detail on First Financial here.
Westwood Holdings Group, Inc. (NYSE:WHG)
WHG has a substantial dividend yield of 4.69% and the company currently pays out 97.33% of its profits as dividends . WHG has increased its dividend from US$1.20 to US$2.72 over the past 10 years. The company has been a reliable payer too, not missing a payment during this time. The company has averaged an annual earnings growth rate of 7.59% over the past five years. Interested in Westwood Holdings Group? Find out more here.
EMC Insurance Group Inc. (NASDAQ:EMCI)
EMCI has a nice dividend yield of 3.46% and their payout ratio stands at 56.85% . In the case of EMCI, they have increased their dividend per share from US$0.48 to US$0.88 so in the past 10 years. The company has been a dependable payer too, not missing a payment in this 10 year period. EMC Insurance Group has had strong and consistent earnings over the last five years, with the company averaging double digit EPS growth of 11.00%. Interested in EMC Insurance Group? 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.