The fortunes of financial services companies often follow that of the broader economy. 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. I’ve made a list of other value-adding dividend-paying stocks in the financial industry for you to consider for your investment portfolio.

Insurance Australia Group Limited (ASX:IAG)

IAG has a large dividend yield of 5.63% and is currently distributing 84.54% of profits to shareholders . Despite there being some hiccups, dividends per share have increased during the past 10 years.

QBE Insurance Group Limited (ASX:QBE)

QBE has an alluring dividend yield of 6.51% and their payout ratio stands at 59.73% , and analysts are expecting the payout ratio in three years to hit 62.13%. Besides capital gain prospects, just the yield is higher than the low risk savings rate – enticing for investors with goals of beating their bank accounts. Plus, a 6.51% yield places it amidst the market’s top dividend payers.

ASX Limited (ASX:ASX)

ASX has a good-sized dividend yield of 3.70% and is paying out 89.91% of profits as dividends . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from $1.83 to $2.018.

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.