In this article, we discuss the 13 best financial sector dividend stocks to buy.
According to S&P Global’s November 26 report on global economic outlook for Q1 2026, a few favorable drivers for growth were highlighted. Firstly, US import tariffs have finally settled down; there is less uncertainty around volatility in rates, and the imposed rates are lower than originally forecasted. Moreover, the recent pact between the US and China, as well as the ongoing trade agreements between the US, Mexico, and Canada, have improved the situation and provided greater clarity. However, India is one of the biggest American trade partners, where a deal has not been made regarding tariffs on imports.
Beyond trade developments, a trend seen primarily in the US but reflected globally, is that data centers and AI are strong catalysts for economic growth. A supportive financial landscape is also driving this growth. Although central banks have neutral or restrictive rates, the financial environment is facilitating as a whole, which points to premium asset prices, both in equities and real estate.
On the other hand, the banking and capital markets outlook for 2026 from Deloitte suggests that an unpredictable economy, shifting consumer habits, and consistent inflation might potentially pressure the revenue and profits for the banking industry, although strong capital reserves provide some protection. Banks could face higher competition from non-bank institutions, and may have to expand their income streams while protecting margins.
Innovation in payments is another area shaping the financial landscape. Since stablecoins are now supported by a new US legislation for innovation, it could hurt bank deposits and disrupt the conventional transaction processes. To remain competitive, banks need to swiftly decide how to issue, support, and process innovative payment methods to keep up with fresh customer trends.
With that outlook in mind, let’s take a look at the best financial sector dividend stocks to invest in.
Photo by Karolina Grabowska: https://www.pexels.com/photo/hands-holding-us-dollar-bills-4968630/
Our Methodology
For this list, we used a stock screener to identify dividend-paying financial stocks. To narrow the selection, we focused on companies with strong hedge fund interest, consistent dividend records over several years, and healthy financial performance. These firms are also likely to survive market volatility well due to their operational scale. We included hedge fund sentiment data for each stock as of Q3 2025, ranking them in ascending order based on the number of hedge fund holders.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 76
Dividend Yield as of November 28: 2.10%
Wells Fargo & Company (NYSE:WFC) is one of the best dividend stocks in the financial sector. On November 3, Barclays analyst Jason Goldberg reiterated a Buy recommendation on WFC, assigning a price target of $94.
On November 5, in a separate update, a Reuters report disclosed that Charlie Scharf, the CEO of Wells Fargo, commented that he predicts the WFC’s headcount to drop as it prioritises operational efficiency. Scharf mentioned that the workforce back in 2019 consisted of 275,000 employees, and presently it stands at just over 210,000.
The US Federal Reserve erased a $1.95 trillion asset cap on the bank during June this year, which cleared a huge penalty for WFC’s fake accounts controversy. This led to more room for growth at the bank, and now WFC is dedicated to increasing efficiency and reducing expenditure. This was a 7-year asset cap by the Fed, and now the bank has more room to grow via acquisitions.
Although the CEO mentioned that the bank is not dealing with high expectations for mergers and acquisitions, the bank could potentially acquire a lender given the right price and location. Scharf also added that WFC could expand into categories such as payments and wealth management.
Earlier, Scharf had also discussed his plan to turn Wells Fargo into the best American bank for all customers and to move it into the top five investment banks within the country.
12. Blackstone Inc. (NYSE:BX)
Number of Hedge Fund Holders: 80
Dividend Yield as of November 28: 3.20%
Blackstone Inc. (NYSE:BX) is one of the best dividend stocks in the financial sector. Blackstone is a New York-based global investment company that manages multiple assets, including private equity, real estate, credit, and hedge funds. It is one of the top financial dividend stocks, with a dividend payout history dating back to 19 consecutive years.
On November 3, Blackstone Inc. (NYSE:BX) disclosed that it has completed an offering of senior notes worth $1.2 billion via an indirect subsidiary, Blackstone Reg Finance Co. This offering had two separate series of senior notes: 4.300% notes totaling $600 million with a 2030 maturity, and 4.950% notes worth $600 million due in 2036. The notes are completely backed by Blackstone and its indirect subsidiaries. The funds collected from these senior notes will be utilized for general corporate expenses, and the underwriters included BofA Securities, Citigroup Global Markets, Deutsche Bank Securities, Morgan Stanley, and RBC Capital Markets.
In a separate update, Blackstone director James Breyer revealed on October 31 that he purchased 13,170 units of BX stock for an average price per unit of $151.23. This transaction took place on October 29, 2025, worth a total of $1.99 million. The director now holds 55,006 shares of Blackstone.
