Australia and New Zealand Banking Group, Macquarie Group, and Suncorp Group are financial services stocks that generally perform in-line with the economy. 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. I’ve identify the following financial stocks paying high income, which may increase the value of your portfolio.

Australia and New Zealand Banking Group Limited (ASX:ANZ)

ANZ has an alluring dividend yield of 5.32% and is currently distributing 72.69% of profits to shareholders . Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from $1.36 to $1.6.

Macquarie Group Limited (ASX:MQG)

MQG has a great dividend yield of 4.99% and is currently distributing 67.72% of profits to shareholders , with analysts expecting a 69.53% payout in the next three years. While there’s been some level of instability in the yield, MQG has overall increased DPS over a 10 year period from $4.0263 to $4.85.

Suncorp Group Limited (ASX:SUN)

SUN has a sumptuous dividend yield of 5.24% and has a payout ratio of 87.07% . SUN’s dividend alone will put you better off than your bank interest, but the company’s yield isn’t only higher than the low risk savings rate. It’s also amongst the market’s top dividend 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.