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. I’ve identify the following financial stocks paying high income, which may increase the value of your portfolio.

Advanced Share Registry Limited (ASX:ASW)

ASW has a juicy dividend yield of 5.71% and is distributing 105.75% of earnings as dividends . ASW’s dividends have seen an increase over the past 10 years, with payments increasing from AU$0.015 to AU$0.042 in that time. The company has been a dependable payer too, not missing a payment in this 10 year period. When we compare Advanced Share Registry’s PE ratio with its industry, the company appears favorable. The AU Capital Markets industry’s average ratio of 20.4 is above that of Advanced Share Registry’s (18.5). More on Advanced Share Registry here.

Fiducian Group Limited (ASX:FID)

FID has a good-sized dividend yield of 3.51% and their current payout ratio is 66.53% . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from AU$0.13 to AU$0.18. The company’s future earnings growth looks promising, with analysts expecting earnings growth over the next three years to reach 60.81%. Interested in Fiducian Group? Find out more here.

Bell Financial Group Limited (ASX:BFG)

BFG has a sumptuous dividend yield of 8.82% and pays out 3.21% 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 AU$0.06 to AU$0.075. Bell Financial Group’s performance over the last 12 months beat the au capital markets industry, with the company reporting 25.99% EPS growth compared to its industry’s figure of 8.71%. More detail on Bell Financial Group 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.