In this article, we will be looking at 10 finance stocks that pay dividends. To skip our detailed analysis of finance stocks and dividend investing, you can go directly to see the 5 Finance Stocks that Pay Dividends.
As the global community continues to battle the COVID-19 pandemic alongside economic recession and communal lockdowns, we are beginning to finally see a light at the end of the dark tunnel. In a report on Global Economic Prospects for 2021, the World Bank has mentioned that the global economy can be expected to benefit in light of ever-growing vaccination rates and ever-decreasing COVID-19 cases across the globe. The economy is thus expected to grow by about 5.6% this year, marking its strongest post-recession performance in the last 80 years. And while this impressive rebound and growth are expected to be anything but smooth-sailing in light of vaccination efforts falling short of expectations especially in emerging markets and developing economies, or EMDEs, it is still enough to lift the hopes of some. As such, the outlook for some major industries like the global banking and finance industry is beginning to seem just a little less bleak as the year progresses.
A testament to the above is the growth in the economy witnessed so far. For instance, the US S&P 500’s earnings growth in the first quarter of 2021 managed to exceed expectations and go beyond. The earnings growth for the S&P 500 in Q1 stood at an eye-popping 52% versus the consensus industry estimate of 24%, after all. Secondly, Russell Investments also expects even strong growth in the US as far as the GDP is concerned, with growth rate estimates currently standing at 7% for 2021, especially throughout the latter half of the year. As the situation thus stands, the case for growth and recovery in major industries seems ever stronger.
In the finance sector, for instance, companies like Citigroup Inc. (NYSE: C), Wells Fargo & Company (NYSE: WFC), The Goldman Sachs Group, Inc. (NYSE: GS), and Visa Inc. (NYSE: V) are managing to regain momentum as well. Visa Inc. (NYSE: V) has just reported highly optimistic fiscal third quarter of 2021 results this June, showing an EPS of $1.49 beating estimates by $0.14, while its revenue of $16.13 billion represented not only a year-over-year growth of 26.73% but also beat estimates by $272.49 million as well.
Additionally, Wells Fargo & Company (NYSE: WFC) also demonstrated a highly positive performance in the second quarter of 2021 with an EPS of $1.37 beating estimates by $0.44, and a revenue of $20.27 billion beating estimates by $2.54 billion. Other companies within the same industry have managed to prove themselves just as capable of recovering from the economic downturn imposed by the COVID-19 pandemic, making it easier for investors to once again place their trust in finance dividend stocks.
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Investing is becoming difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Now let’s take a look at 10 finance stocks that pay dividends.
Our Methodology
We have used Insider Monkey’s data on 866 hedge funds to pick finance stocks more popular among hedge funds while ensuring that each stock had positive analysts’ ratings for the most part. Additionally, all the stocks added to our list below have robust fundamentals demonstrating core business strengths and have dividend yields of at least 3%.
Finance Stocks that Pay Dividends
10. Universal Insurance Holdings, Inc. (NYSE: UVE)
Number of Hedge Fund Holders: 13
Dividend Yield: 4.5%
Universal Insurance Holdings, Inc. (NYSE: UVE) is an insurance company based in Florida. The company’s subsidiaries offer insurance for personal residential and other coverages, and it ranks 10th on our list of finance stocks that pay dividends.
This July, Universal Insurance Holdings, Inc. (NYSE: UVE) offered and affirmed its 2021 adjusted EPS outlook to be between $2.75-$3, while also affirming that its annualized return on average equity would be in the 17-19% range.
In the second quarter of 2021, Universal Insurance Holdings, Inc. (NYSE: UVE) had an EPS of $0.65, beating estimates by $0.13. The company’s revenue was $279.18 million, up 10.48% year over year and also beating estimates by $6.28 million.
By the end of the first quarter of 2021, 13 hedge funds out of the 866 tracked by Insider Monkey held stakes in Universal Insurance Holdings, Inc. (NYSE: UVE) worth roughly $32.7 million. This is compared to 14 hedge funds in the previous quarter with a total stake value of approximately $36.4 million.
Like Citigroup Inc. (NYSE: C), Wells Fargo & Company (NYSE: WFC), The Goldman Sachs Group, Inc. (NYSE: GS), and Visa Inc. (NYSE: V), Universal Insurance Holdings, Inc. (NYSE: UVE) is a good stock to invest in.
9. Northwest Bancshares, Inc. (NASDAQ: NWBI)
Number of Hedge Fund Holders: 14
Dividend Yield: 5.7%
Northwest Bancshares, Inc. (NASDAQ: NWBI) is the holding company for Northwest Bank, which was founded in 1896. The company itself is based in Warren, Pennsylvania, and ranks 9th on our list of finance stocks that pay dividends.
Stephens holds an Equal Weight rating on shares of Northwest Bancshares, Inc. (NASDAQ: NWBI) while B. Riley Securities has a Neutral rating on the stock in light of its Q2 results.
In the second quarter of 2021, Northwest Bancshares, Inc. (NASDAQ: NWBI) had an EPS of $0.24, missing estimates by $0.03. The company’s revenue was $150.44 million, up 12.62% year over year and beating estimates by $19.37 million. Northwest Bancshares, Inc. (NASDAQ: NWBI) has also gained 2.45% year to date and 30.22% in the past year.
By the end of the first quarter of 2021, 14 hedge funds out of the 866 tracked by Insider Monkey held stakes in Northwest Bancshares, Inc. (NASDAQ: NWBI) worth roughly $32.7 million. This is compared to 9 hedge funds in the previous quarter with a total stake value of approximately $21.2 million.
Like Citigroup Inc. (NYSE: C), Wells Fargo & Company (NYSE: WFC), The Goldman Sachs Group, Inc. (NYSE: GS), and Visa Inc. (NYSE: V), Northwest Bancshares, Inc. (NASDAQ: NWBI) is a good stock to invest in.
8. Artisan Partners Asset Management Inc. (NYSE: APAM)
Number of Hedge Fund Holders: 21
Dividend Yield: 6.3%
Artisan Partners Asset Management Inc. (NYSE: APAM) is a capital market company based in Wisconsin and ranked 8th on our list of finance stocks that pay dividends. The company specializes in the provision of high value-added and active investment strategies to its clients across the globe.
As of this July, Citigroup holds a Neutral rating on shares of Artisan Partners Asset Management Inc. (NYSE: APAM) while Keefe Bruyette holds a Market Perform rating on the stock with a price target of $55.
In the second quarter of 2021, Artisan Partners Asset Management Inc. (NYSE: APAM) had an EPS of $1.28, beating estimates by $0.03. The company’s revenue was $304.90 million, up 50.20% year over year and also beating estimates by $2.25 million. Artisan Partners Asset Management Inc. (NYSE: APAM) has also gained 2.95% year to date and 30.7% in the past year.
By the end of the first quarter of 2021, 21 hedge funds out of the 866 tracked by Insider Monkey held stakes in Artisan Partners Asset Management Inc. (NYSE: APAM) worth roughly $279 million. This is compared to 21 hedge funds in the previous quarter with a total stake value of approximately $317 million.
Like Citigroup Inc. (NYSE: C), Wells Fargo & Company (NYSE: WFC), The Goldman Sachs Group, Inc. (NYSE: GS), and Visa Inc. (NYSE: V), Artisan Partners Asset Management Inc. (NYSE: APAM) is a good stock to invest in.
7. New York Community Bancorp, Inc. (NYSE: NYCB)
Number of Hedge Fund Holders: 25
Dividend Yield: 5.8%
New York Community Bancorp, Inc. (NYSE: NYCB) is a commercial bank based in Westbury, New York. The bank ranks 7th on our list of finance stocks that pay dividends and operates about 225 branches across the US. It is currently among the largest banks in America.
As of this May, Meng Jiao, an analyst over at Deutsche Bank, raised the price target on shares of New York Community Bancorp, Inc. (NYSE: NYCB). The new price target stands at $15, versus the previous target of $11.50. Jiao also has a Hold rating on New York Community Bancorp, Inc. (NYSE: NYCB) shares.
In the second quarter of 2021, New York Community Bancorp, Inc. (NYSE: NYCB) had an EPS of $0.33, beating estimates by $0.03. The company’s revenue was $347 million, up 23.38% year over year and also beating estimates by $12.69 million. New York Community Bancorp, Inc. (NYSE: NYCB) has also gained 15.46% in the past 6 months and 15.24% year to date.
By the end of the first quarter of 2021, 25 hedge funds out of the 866 tracked by Insider Monkey held stakes in New York Community Bancorp, Inc. (NYSE: NYCB) worth roughly $329 million. This is compared to 25 hedge funds in the previous quarter with a total stake value of approximately $244 million.
Like Citigroup Inc. (NYSE: C), Wells Fargo & Company (NYSE: WFC), The Goldman Sachs Group, Inc. (NYSE: GS), and Visa Inc. (NYSE: V), New York Community Bancorp, Inc. (NYSE: NYCB) is a good stock to invest in.
6. Webster Financial Corporation (NYSE: WBS)
Number of Hedge Fund Holders: 27
Dividend Yield: 3.15%
Webster Financial Corporation (NYSE: WBS), a US-based commercial bank based in Connecticut, ranks 6th on our list of finance stocks that pay dividends. The banking company operates about 177 branches and 316 ATMs in Connecticut, Massachusetts, Rhode Island, and New York.
Raymond James’s William Wallace just this June raised the price target on shares of Webster Financial Corporation (NYSE: WBS). The new target stands at $64, versus the old $59 target. Wallace has also reiterated an Outperform rating on Webster Financial Corporation (NYSE: WBS).
In the second quarter of 2021, Webster Financial Corporation (NYSE: WBS) had an EPS of $1.21, beating estimates by $0.23. The company’s revenue was $293.55 million, up 3.19% year over year but missing estimates by $2.56 million. Webster Financial Corporation (NYSE: WBS) has also gained 16.79% year to date and 81.24% in the past year.
By the end of the first quarter of 2021, 27 hedge funds out of the 866 tracked by Insider Monkey held stakes in Webster Financial Corporation (NYSE: WBS) worth roughly $431 million. This is compared to 26 hedge funds in the previous quarter with a total stake value of approximately $394 million.
Like Citigroup Inc. (NYSE: C), Wells Fargo & Company (NYSE: WFC), The Goldman Sachs Group, Inc. (NYSE: GS), and Visa Inc. (NYSE: V), Webster Financial Corporation (NYSE: WBS) is a good stock to invest in.
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Disclosure: None. 10 Finance Stocks that Pay Dividends is originally published on Insider Monkey.
