A lot of things happened in the financial sector since 2008. Major banks cut their dividend and lost respect from many investors. Further down the road, they have reimbursed their debt and raised their dividend again. At the same time, many investing firms surfed on the bull market to grow their assets under management (AUM) to unmatched levels. 10 years after the crash, several financials pay juicy dividend and show strong growth vectors. Believe it or not, there are many great opportunities in this sector. The key is to focus on future dividend growth instead of looking at the company’s dividend history. In other words, pick stocks like Blackrock (BLK) instead of Franklin (BEN).
Here’s the list with dividend yield and 5 year Revenue, EPS and Dividend growth. You can search through this list or download the complete file at the bottom.
| Ticker | Name | Yield | Revenue | EPS | Dividend |
|---|---|---|---|---|---|
| AGM | Federal Agricultural | 2.06% | 6.86% | 11.20% | 29.20% |
| AGO | Assured Guaranty | 1.68% | 12.00% | 57.99% | 9.63% |
| AI.TO | Atrium Mortgage Inv | 6.87% | 23.09% | 1.11% | 17.08% |
| AJG | Arthur J. Gallagher | 2.44% | 19.34% | 8.58% | 2.78% |
| ALL | Allstate | 1.81% | 2.95% | 13.42% | 10.96% |
| AMP | Ameriprise Financial | 2.43% | 3.31% | 15.31% | 17.77% |
| AMTD | TD Ameritrade | 1.50% | 6.65% | 9.14% | 24.57% |
| ARGO | Argo Group Intl | 1.65% | 5.91% | 0.98% | 24.53% |
| ASB | Associated Banc | 2.04% | 2.71% | 4.80% | 16.80% |
| BAC | Bank of America | 1.73% | 1.46% | 44.22% | 57.69% |
| BANC | Banc of California | 2.63% | 33.21% | 7.56% | 1.61% |
| BBT | BB&T | 2.79% | 2.52% | 2.88% | 9.51% |
| BGCP | BGC Partners | 6.31% | 12.98% | 32.82% | 2.13% |
| BK | Bank of New York Mellon | 1.80% | 1.28% | 12.74% | 10.59% |
| BKU | BankUnited | 2.02% | 10.51% | 24.55% | 3.13% |
| BLK | BlackRock | 2.19% | 5.99% | 17.12% | 10.76% |
| BMO.TO | Bank of Montreal | 2.69% | 6.55% | 5.36% | 4.77% |
| BNS.TO | Bank of Nova Scotia | 4.34% | 6.86% | 4.61% | 6.85% |
| BOH | Bank of Hawaii | 2.57% | 2.16% | 3.36% | 2.53% |
| BRKL | Brookline Bancorp | 1.97% | 5.44% | 4.24% | 1.15% |
| BUSE | First Busey | 2.36% | 11.24% | 9.52% | 3.71% |
| BX | Blackstone Group | 6.37% | 12.11% | 128.46% | 34.86% |
| CATY | Cathay General Banc | 2.29% | 8.41% | 7.41% | 85.14% |
| CB | Chubb | 2.24% | 12.45% | 3.05% | 3.19% |
| CBU | Community Bank System | 2.27% | 9.46% | 10.76% | 4.48% |
| CFFN | Capitol Federal Financial | 2.57% | 0.80% | 6.03% | 2.53% |
| CFR | Cullen/Frost Bankers | 2.20% | 6.12% | 3.81% | 3.44% |
| CHCO | City Holding Co | 2.34% | 4.39% | 4.08% | 4.56% |
| CHFC | Chemical Financial | 2.00% | 22.61% | 4.62% | 6.05% |
| CHW.TO | Chesswood Group | 7.62% | 1.94% | 4.06% | 5.59% |
| CINF | Cincinnati Financial | 3.06% | 6.87% | 19.60% | 4.30% |
| CIX.TO | CI Financial | 5.54% | 7.69% | 8.57% | 7.95% |
| CM.TO | Canadian Imperial Bank | 4.59% | 5.58% | 7.69% | 6.89% |
| CME | CME Group | 1.69% | 4.57% | 33.19% | 8.06% |
| CNA | CNA Financial | 2.60% | 0.38% | 7.49% | 12.89% |
| CNS | Cohen & Steers | 2.93% | 6.69% | 6.33% | 9.24% |
| COLB | Columbia Banking System | 2.22% | 12.42% | 7.56% | 20.95% |
| CTBI | Community Trust Bancorp | 2.56% | 0.86% | 5.11% | 2.73% |
| CVBF | CVB Financial | 2.48% | 4.89% | 5.21% | 9.69% |
| CWB.TO | Canadian Western Bank | 2.78% | 6.97% | 2.76% | 8.45% |
| DFS | Discover Financial | 1.98% | 5.28% | 2.85% | 26.58% |
| EBMT | Eagle Bancorp Montana | 1.88% | 10.75% | 8.05% | 3.50% |
| EQB.TO | Equitable Group | 1.69% | 16.50% | 8.55% | 12.81% |
| EV | Eaton Vance | 2.33% | 4.81% | 11.43% | 8.35% |
| EVBN | Evans Bancorp | 1.83% | 6.27% | 1.81% | 3.30% |
| EVR | Evercore | 1.55% | 21.55% | 28.01% | 11.61% |
| FAF | First American Financial | 3.01% | 4.91% | 4.10% | 31.95% |
| FBIZ | First Business Financial | 2.09% | 10.65% | 0.11% | 30.01% |
| FBNK | First Connecticut Bancorp | 2.02% | 8.50% | 35.91% | 34.08% |
| FCF | First Commonwealth Finl | 2.11% | 3.98% | 9.04% | 12.20% |
| FDEF | First Defiance Financial | 1.63% | 5.75% | 1.58% | 37.97% |
| FFBC | First Financial Bancorp | 2.32% | 1.11% | 6.47% | 3.59% |
| FFG | FBL Financial Group | 2.22% | 2.33% | 21.14% | 34.49% |
| FFIC | Flushing Financial | 2.85% | 2.74% | 4.24% | 6.72% |
| FIBK | First Interstate BancSys | 2.45% | 6.51% | 3.73% | 14.40% |
| FII | Federated Investors | 4.36% | 3.12% | 9.97% | 0.82% |
| FISI | Financial Institutions | 2.75% | 5.38% | 5.47% | 8.32% |
| FITB | Fifth Third Bancorp | 2.28% | 1.03% | 15.88% | 10.76% |
| FLIC | First of Long Island | 2.34% | 8.02% | 3.77% | 6.33% |
| FMNB | Farmers National Banc | 1.58% | 14.58% | 9.71% | 12.89% |
| FN.TO | First National Financial | 6.61% | 4.84% | 14.21% | 7.51% |
| FNF | Fidelity National Finl | 2.92% | 2.82% | 0.18% | 11.95% |
| FRME | First Merchants | 1.62% | 9.96% | 8.50% | 47.15% |
| GABC | German American | 1.55% | 8.39% | 6.92% | 6.71% |
| GBCI | Glacier Bancorp | 2.19% | 8.10% | 6.78% | 9.65% |
| GCG.A.TO | Guardian Capital Group | 1.71% | 11.85% | 2.03% | 12.03% |
| GS.TO | Gluskin Sheff | 6.02% | 13.27% | 21.73% | 9.86% |
| GSBC | Great Southern Bancorp | 1.78% | 1.50% | 23.70% | 5.48% |
| GSY.TO | goeasy | 2.03% | 15.21% | 8.84% | 16.19% |
| GWO.TO | Great-West Lifeco | 4.70% | 8.97% | 6.57% | 3.60% |
| HBAN | Huntington Bancshares | 2.79% | 8.87% | 7.73% | 16.95% |
| HFWA | Heritage Financial | 1.60% | 19.49% | 8.37% | 11.20% |
| HMN | Horace Mann Educators | 2.44% | 3.00% | 10.20% | 14.87% |
| HOMB | Home BancShares | 1.93% | 22.67% | 11.17% | 28.88% |
| HOPE | Hope Bancorp | 2.89% | 14.56% | 0.25% | 58.49% |
| HSBC | HSBC Holdings | 5.46% | 0.37% | 2.50% | 4.46% |
| HTGC | Hercules Capital | 9.62% | 12.17% | 0.43% | 5.47% |
| IBKC | IBERIABANK | 1.96% | 12.83% | 3.22% | 1.43% |
| IFC.TO | Intact Financial | 2.82% | 6.00% | 3.15% | 9.86% |
| IGM.TO | IGM Financial | 5.84% | 4.11% | 2.95% | 0.91% |
| INDB | Independent Bank | 1.78% | 7.81% | 4.07% | 8.79% |
| IPCC | Infinity Prop & Casualty | 1.62% | 2.38% | 6.27% | 20.85% |
| ISBC | Investors Bancorp | 2.71% | 11.41% | 6.00% | 75.88% |
| IVZ | Invesco | 4.42% | 4.96% | 8.33% | 12.44% |
| JPM | JPMorgan Chase | 2.10% | 0.53% | 3.95% | 12.05% |
| KEY | KeyCorp | 2.16% | 9.06% | 5.43% | 16.12% |
| LAZ | Lazard | 3.40% | 6.70% | 6.49% | 10.89% |
| LB.TO | Laurentian Bank | 5.60% | 4.51% | 8.87% | 5.98% |
| LBAI | Lakeland Bancorp | 2.05% | 10.75% | 9.41% | 10.91% |
| LKFN | Lakeland Financial | 1.90% | 8.78% | 9.24% | 8.83% |
| LM | Legg Mason | 3.45% | 3.75% | 29.35% | 20.55% |
| LNC | Lincoln National | 1.97% | 4.33% | 20.71% | 29.38% |
| LPLA | LPL Financial Holdings | 1.52% | 2.97% | 10.76% | 33.03% |
| LTXB | LegacyTexas | 1.59% | 19.42% | 12.16% | 8.81% |
| MAIN | Main Street Capital | 4.94% | 17.85% | 3.15% | 5.23% |
| MBFI | MB Financial | 1.92% | 19.31% | 13.67% | 44.54% |
| MBWM | Mercantile Bank | 2.20% | 18.68% | 7.52% | 52.40% |
| MCY | Mercury General | 5.63% | 4.18% | 4.23% | 0.41% |
| MFSF | MutualFirst Financial | 1.82% | 3.20% | 13.63% | 22.42% |
| MKP.TO | MCAN Mortgage | 7.88% | 4.44% | 7.11% | 3.58% |
| MMC | Marsh & McLennan | 1.82% | 3.30% | 6.33% | 9.70% |
| MRCC | Monroe Capital | 7.60% | 97.38% | 55.74% | 32.72% |
| MRLN | Marlin Business Services | 1.82% | 10.99% | 16.10% | 14.87% |
| MS | Morgan Stanley | 2.13% | 7.79% | 173.84% | 35.10% |
| MTB | M&T Bank | 1.80% | 5.71% | 2.90% | 1.39% |
| NBTB | NBT Bancorp | 2.43% | 6.74% | 1.66% | 2.83% |
| NDAQ | Nasdaq | 1.75% | 4.91% | 13.43% | 30.21% |
| NFBK | Northfield Bancorp | 2.26% | 9.24% | 11.64% | 23.16% |
| NTRS | Northern Trust | 1.64% | 6.65% | 11.85% | 6.28% |
| NWBI | Northwest Bancshares | 3.75% | 6.54% | 3.32% | 1.30% |
| OCFC | OceanFirst Financial | 2.00% | 16.56% | 7.14% | 4.56% |
| ORIT | Oritani Financial | 5.18% | 5.27% | 5.03% | 6.96% |
| OZRK | Bank of the Ozarks | 1.66% | 31.98% | 26.52% | 23.22% |
| PACW | PacWest Banc | 4.24% | 30.44% | 8.41% | 20.42% |
| PB | Prosperity Bancshares | 2.09% | 9.96% | 4.03% | 11.52% |
| PBCT | People's United | 3.82% | 3.08% | 4.66% | 1.52% |
| PFG | Principal Financial Group | 3.74% | 8.87% | 25.02% | 19.11% |
| PFLT | PennantPark Floating Rate | 8.26% | 37.52% | 2.71% | 4.61% |
| PFS | Provident Financial | 2.86% | 5.05% | 4.21% | 8.87% |
| PGR | Progressive | 1.90% | 9.45% | 12.91% | 10.83% |
| PWF.TO | Power Financial | 5.52% | 8.57% | 5.18% | 3.34% |
| RF | Regions Financial | 2.05% | 0.93% | 5.97% | 51.10% |
| RNST | Renasant | 1.65% | 18.35% | 13.99% | 1.43% |
| RY.TO | Royal Bank of Canada | 2.73% | 6.71% | 9.04% | 8.83% |
| SAFT | Safety Insurance Group | 3.70% | 3.58% | 1.53% | 6.40% |
| SASR | Sandy Spring Bancorp | 2.53% | 5.52% | 9.58% | 16.72% |
| SFNC | Simmons First National | 1.84% | 24.98% | 15.70% | 4.56% |
| SONA | Southern National Bancorp | 1.80% | 16.35% | 0.07% | 27.49% |
| SRCE | 1st Source | 1.56% | 4.07% | 7.20% | 4.84% |
| SSB | South State | 1.53% | 20.75% | 7.63% | 13.85% |
| STBA | S&T Bancorp | 2.01% | 8.48% | 1.92% | 6.45% |
| STBZ | State Bank Financial | 2.06% | 10.76% | 12.49% | 56.32% |
| STT | State Street Corp | 1.81% | 2.97% | 4.79% | 10.76% |
| TBNK | Territorial Bancorp | 2.55% | 1.54% | 1.32% | 12.70% |
| TCBK | TriCo Bancshares | 1.80% | 10.02% | 4.28% | 12.89% |
| TCF | TCF Financial | 1.52% | 1.57% | 17.31% | 8.45% |
| TD.TO | The Toronto-Dominion Bank | 3.24% | 7.19% | 10.74% | 10.21% |
| THG | The Hanover Insurance | 1.77% | 2.46% | 35.91% | 10.65% |
| TOWN | Towne Bank | 1.78% | 14.48% | 4.14% | 10.91% |
| TRI.TO | Thomson Reuters | 3.31% | 2.29% | 3.56% | 6.94% |
| TROW | T. Rowe Price Group | 2.19% | 9.66% | 9.21% | 10.89% |
| TRV | Travelers Companies | 2.39% | 2.34% | 3.07% | 9.59% |
| UBNK | United Financial Bancorp | 2.71% | 21.64% | 13.34% | 5.92% |
| UBSH | Union Bankshares | 2.11% | 12.48% | 5.96% | 16.97% |
| UFCS | United Fire Group | 2.07% | 5.30% | 2.06% | 12.68% |
| UMPQ | Umpqua Holdings | 3.37% | 15.89% | 2.92% | 14.87% |
| UNM | Unum | 2.45% | 1.43% | 6.63% | 12.84% |
| UVE | Universal Insurance Hldgs | 2.01% | 22.74% | 31.86% | 10.49% |
| WASH | Washington Trust Bancorp | 2.79% | 3.43% | 2.67% | 10.38% |
| WBS | Webster Financial | 1.73% | 6.47% | 7.50% | 24.09% |
| WF | Woori Bank | 3.74% | 0.60% | 7.19% | 20.00% |
| WFC | Wells Fargo | 2.81% | 0.59% | 4.06% | 14.57% |
| WSBC | Wesbanco | 2.40% | 10.22% | 1.79% | 8.24% |
| X.TO | TMX Group | 2.42% | 16.40% | 8.08% | 4.04% |
In the middle of the 2018 Q1 earnings season, when everybody was cheering for companies beating both revenue and earnings expectations, something strange happened; a moment of panic! Results were good, economic metrics remained stable, but yet, investors started to feel icky. There was this brutal drop over a few days, and it was enough for many to call for the crash we have all been waiting for. But then the market bounced back right after…
Source: Ycharts
Between the time we are writing this newsletter, and the moment you read it, there will be a few more days. Maybe the market will go up, or it will drop again on a dead cat rebound. In either case, I will tell you something; 2018 will be a year of volatility. Many investors are afraid of this never-ending bull market, and they are only looking for a reason to sell and cash in some profits. This is exactly what happened at the end of January. Trying to call the next market correction is as effective as predicting what the weather will be on September 10th 2018. I’ll go with my prediction; the sun will rise and then it will set. This is exactly what will happen to the market in the meantime!
Source: Ycharts
The main reason why we ran into this sudden drop is because the market finally realized interest rates were going up (I know, this is not really news). The market started to panic thinking the cheap money is really gone, inflation could jump into the equation, and put additional pressure on future company earnings.
While this is all true, there is nothing new here either. Why did the market start to panic? I don’t know. My guess is there was some profit taking. In the meantime, I would rather stay invested and continue to collect my dividends. A great sector to do so is possibly the financial industry. Banks are going to benefit from a larger interest rate spread and asset managers will have the door wide open to offer various “hedged” products to their scared clientele.
Since the 2008 crisis, many financials cleaned their balance sheets, and had the chance of starting fresh. Since then, they have published strong numbers. It’s not always easy to determine the difference between the good and the bad as the whole sector is flourishing. We have received many requests from members to analyse less classic options. Besides our classic BLK, JPM, WFC and Canadian Banks, there are lots of other companies to talk about. This is what we plan do in this issue.
The Financial dividend list is updated monthly
I think there are several great opportunities in this sector. The key here is to find companies with a strong competitive advantage. You don’t want to pick junk that has been brought up to the top by the high tide. You want to pick only the finest shrimps for your portfolio. This is what we will offer you in the following list.
While this page cannot be taken as a source for stock recommendations, this is the perfect starting point to build or improve your portfolio. I wanted to create an oasis of stock ideas.
Here are the metrics I’ve used to build each list:
- Dividend yield between 1.5% and 10% (I want stocks that pay dividend)
- 5-year revenue growth positive (I want growing businesses in my portfolio)
- 5-year normalized diluted EPS growth positive (growing earnings leads to more dividend growth)
- 5-year dividend growth positive (I want management committed to make me richer)
- 3-year dividend growth positive (management must not sleep on the job)
- Payout ratio under 100% (I want those dividends to keep coming)
