The U.S. banking sector has always been relatively high yielding, although it has gone through great turbulence over the last decade. Dodd-Frank regulation has helped to improve the sector’s weaknesses, raising the standards for the sector’s lending business and implementing capital reserve requirements for better operational efficiency. With the Dodd-Frank, the financial services industry also got the Financial Stability Oversight Council, which now oversees and facilitates communication among the industry’s nine regulatory agencies.
With the industry’s regulatory improvements, the banking sector is now positioned and ready to take advantage of the Fed’s tightening of borrowing rates, as net interest is a large revenue driver for banks. Among large-cap financial stocks, there are a number of companies with a forward dividend yield above 2.5%. For investors seeking added return from the sector’s potential gains, People's United Financial, Inc. (PBCT), BB&T Corp. (BBT) and JPMorgan (JPM) rise to the top as leading dividend investments. In addition to a steady dividend, all three companies have demonstrated positive free cash flow with which to pay dividends and strong dividend coverage ratios, represented by earnings per share divided by dividends per share.
Source: Investopedia
Related Articles:
- Where To Find Great Dividend Stocks
- How To Manage Your Dividend Portfolio In A Downturn
- 5 Tech Stocks With A History of Growing Their Dividends
- 8 Dividend Stocks For The Ultimate In Deferred Gratification
- The Most Important Thing To Consider When Selecting A Dividend Stock
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
The fact is that there are many interesting high-yielding companies that have good long-term prospects. Besides, as the markets get more vol...
-
A common measure of dividend sustainability is the payout ratio, the percent of earnings that are paid out to shareholders. Unfortunately, e...
-
Part of the joy of investing is seeing your good investments continue to grow, years after your initial purchase. Aside from the financial s...
-
Good income investments often come with strong dividend yields, delivering income that's higher than an investor could find at a bank or...
-
A lot changes when you shift from working to retirement, including how you invest. Most investors switch from building a nest egg to living ...
-
Last month we wrote about the top four companies in our model portfolio in the article 4 Dividend Dominators for 2021 - Companies With More ...
-
Both of the listed stocks are often discussed on the Reddit page, and for very different reasons. The former pays a frequent special dividen...
-
Interest rates remain very low and given the ongoing economic impact from COVID-19, they will likely stay very low. This low-rate environmen...
-
When it comes to dividend stocks, investors can fall into the trap of focusing on dividend yield over all else. That can be a dangerous stra...
-
Safety and tranquility are both important aspects of investing for retirement. Yes, we want stocks with meaningful upside. We also -- howeve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.