The fortunes of financial services companies often follow that of the broader economy. Firms in this sector offer services ranging from investment banking to consumer finance. 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 buy-and-hold investor, these healthy dividend stocks in the financial industry can generously contribute to your monthly portfolio income.

Australian Finance Group Limited (ASX:AFG)

AFG has a juicy dividend yield of 5.58% and their payout ratio stands at 51.60% , with an expected payout of 75.38% in three years. 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 5.58% yield places it amidst the market’s top dividend payers. Australian Finance Group’s performance over the last 12 months beat the au mortgage industry, with the company reporting 74.94% EPS growth compared to its industry’s figure of 20.87%. More on Australian Finance Group here.

Mirrabooka Investments Limited (ASX:MIR)

MIR has a large dividend yield of 5.24% and the company currently pays out 171.86% of its profits as dividends . MIR’s last dividend payment was AU$0.14, up from it’s payment 10 years ago of AU$0.10. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. Mirrabooka Investments’s earnings growth over the past 12 months has exceeded the au capital markets industry, with the company reporting an EPS growth of 16.66% while the industry totaled 8.71%. Interested in Mirrabooka Investments? Find out more here.

Scottish Pacific Group Limited (ASX:SCO)

SCO has a sumptuous dividend yield of 5.90% and the company currently pays out 82.30% of its profits as dividends . SCO’s dividend is not only above the low risk savings rate, but also amongst the top dividend payers in the market. The company recorded earnings growth of 486.62% in the past year, comparing favorably with the au consumer finance industry average of 18.94%. More on Scottish Pacific Group 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.