You Should Diversify With These Financial Dividend Stocks
Financial service companies’ profitability tends to be tied to the economic cycle. 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. If you’re a long term investor, these high-dividend financial stocks can boost your monthly portfolio income.
Auswide Bank Ltd (ASX:ABA)
ABA has a sumptuous dividend yield of 6.31% and has a payout ratio of 82.13% . 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. Continue research on Auswide Bank here.
Money3 Corporation Limited (ASX:MNY)
MNY has a substantial dividend yield of 4.97% and pays 38.92% of it’s earnings as dividends , with the expected payout in three years being 42.71%. Despite there being some hiccups, dividends per share have increased during the past 10 years. Dig deeper into Money3 here.
CVC Limited (ASX:CVC)
CVC has a great dividend yield of 5.71% and the company has a payout ratio of 66.25% . While there’s been some level of instability in the yield, CVC has overall increased DPS over a 10 year period from AU$0.12 to AU$0.16. The company recorded earnings growth of 75.21% in the past year, comparing favorably with the au capital markets industry average of 8.71%. More detail on CVC 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.