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. 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.

Advanced Share Registry Limited (ASX:ASW)

ASW has an alluring dividend yield of 5.60% and pays out 100.91% of its profit as dividends . ASW’s DPS have risen to $0.042 from $0.015 over a 10 year period. Much to the delight of shareholders, the company has not missed a payment during this time. The company has a lower PE ratio than the AU Capital Markets industry, which interested investors would be happy to see. The company’s PE is currently 18 while the industry is sitting higher at 22.2.

Fiducian Group Limited (ASX:FID)

FID has a solid dividend yield of 3.40% and pays out 66.56% of its profit as dividends . Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from $0.12 to $0.178. Over the next three years, analysts predict double digit earnings growth for Fiducian Group of 74.48%.

Auswide Bank Ltd (ASX:ABA)

ABA has a substantial dividend yield of 5.87% and the company currently pays out 83.02% of its profits as dividends . With a yield above the savings rate, bank account beating investors will be happy, but perhaps even happier knowing that ABA is in the top quartile of market payers.

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.