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.
11. Intercontinental Exchange, Inc. (NYSE:ICE)
Number of Hedge Fund Holders: 82
Dividend Yield as of November 28: 1.22%
Intercontinental Exchange, Inc. (NYSE:ICE) is one of the best dividend stocks in the financial sector. On November 24, Piper Sandler analyst Patrick Moley reiterated a Buy rating on ICE with the price target clocking in at $202.
In an update separate from the analyst action, Intercontinental Exchange disclosed trading and revenue numbers for October, which displayed year-over-year boosts in different asset categories.
Compared to October last year, the total open increased 16% in October 2025, and futures open interest hit a record of 59.0 million lots at the end of the month. Energy markets saw their average daily volume increase by 9% compared to the same period last year, while the daily average volume for oil trading jumped 7% year-over-year. Open interest for Brent crude rose 12% year-over-year, while other crude and refined items demonstrated sharp upticks with average daily volume climbing 43% and open interest going up by 23%. Moreover, natural gas markets and agricultural and metals markets recorded average daily year-over-year volume growth of 12% and 7%, respectively.
Intercontinental Exchange, Inc. (NYSE:ICE) is an Atlanta-based financial technology company and data provider that operates across three segments: Exchanges, Fixed Income and Data Services, and Mortgage Technology.
10. The Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Holders: 84
Dividend Yield as of November 28: 0.17%
The Progressive Corporation (NYSE:PGR) is one of the best dividend stocks in the financial sector. On November 11, Morgan Stanley analyst Bob Huang reiterated a Sell rating on the stock, assigning a price target of $214.
The analyst observed that there is a prominent slump in the company’s growth within the personal auto policies in force (PIF), and this lag is forecasted to last regardless of the solid seasonal trends. This points towards possible issues in sustaining positive growth trends. The company signaled notable share repurchases, similar to those carried out in 2011. However, Huang mentioned that the repurchases would impact the stock price in the near term, rather than contributing to long-term growth.
In addition to that, Progressive Corp is operating in an extremely competitive environment, and Morgan Stanley added that October data indicates that personal auto policies in force (PIF) numbers may fall short of estimates. While the company’s valuation seems more promising since the last rating, it is imperative that it remains ahead of competitive and inflationary pressure. While these factors became the basis for Morgan Stanley’s Sell rating, the management seems positive that upcoming tariffs might be less intense.
In an update independent from the analyst action, The Progressive Corporation (NYSE:PGR)’s Chief Information Officer, Steven Broz, sold 1,345 shares of the company on November 11. The transaction amounted to $295900 in total. Broz now owns 29042.793 units of Progressive Corp stock.
The Progressive Corporation (NYSE:PGR) is an insurance provider offering a strong portfolio that includes personal auto, specialty vehicle, homeowners, renters, and commercial auto policies.
9. Moody’s Corporation (NYSE:MCO)
Number of Hedge Fund Holders: 87
Dividend Yield as of November 28: 0.77%
Moody’s Corporation (NYSE:MCO) is one of the best dividend stocks in the financial sector. On November 5, analyst David Motemaden from Evercore ISI reiterated a Buy call on Moody’s while assigning a price target of $540.
Separately, the company reported its Q3 financial results on October 22. Moody’s Corporation (NYSE:MCO)’s revenue for the third quarter came in at $2 billion, up 12% year-over-year. This is the company’s third consecutive quarter where it hit more than $1 billion in revenue. Revenue growth was led by positive developments in Corporate Finance, Financial Institutions, Structured Finance, and Public, Project and Infrastructure Finance. Moody’s diluted EPS rose 23% year-over-year due to better operational performance.
In Q3 2025, MCO had free cash flow of nearly $1.8 billion, down from Q3 last year due to a larger tax burden and higher incentive compensation payments. On October 21, the company announced a quarterly dividend of $0.94 per share, which will be distributed on December 12, to shareholders listed by November 21. The company also bought back 1 million shares during the quarter, in addition to giving out 53,000 shares to employees under the stock-based compensation initiative.
Moody’s Corporation (NYSE:MCO) is a global player in risk assessment, operating through two main business segments: Moody’s Analytics and Moody’s Investors Service. The company deals in risk management, regulatory compliance, credit ratings, and analytical assessments for corporate, public sector, and structured finance debt instruments.
8. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Holders: 99
Dividend Yield as of November 28: 1.16%
The Charles Schwab Corporation (NYSE:SCHW) is one of the best dividend stocks in the financial sector. On November 7, Barclays analyst Benjamin Budish assigned a Buy rating on Charles Schwab, setting $115 as the price target.
In a separate business update, SCHW disclosed on November 14 that it has authorized senior notes worth $2 billion.
The notes constitute $1 billion of 4.343% fixed-to-floating senior notes set to mature in 2031 and another $1 billion of 4.914% notes maturing in 2036. After accounting for all expenses, the notes raised about $1.986 billion in net proceeds.
The Bank of New York Mellon Trust Company was the trustee for this transaction, while BofA Securities, Citigroup Global Markets, Goldman Sachs, J.P. Morgan Securities, and Wells Fargo Securities represented the underwriters.
The Charles Schwab Corporation (NYSE:SCHW) is a financial giant that offers a range of services, including wealth management, brokerage, banking, asset management, custody, and advisory in the United States and internationally.
7. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 107
Dividend Yield as of November 28: 2.32%
Citigroup Inc. (NYSE:C) is one of the best dividend stocks in the financial sector. On November 24, Morgan Stanley analyst Betsy Graseck assigned a Buy rating on Citi, while setting a price target of $134.
In a separate business update dated October 27, Citi and Coinbase disclosed their collaboration plan, which improves digital asset payments for the bank’s institutional customers, which will cement both firms solidly in the payment services market. The early stage of this partnership directs attention to pay-ins and pay-outs, reinforcing Coinbase’s fiat and virtual asset platforms, as well as streamlining payments. This joint effort between the two companies works to make these transitions more seamless and accessible around the clock for Citi’s clients.
Brian Foster, Global Head of Crypto as a Service at Coinbase, commented regarding this partnership:
“Citi’s global network and expertise in payments make them an ideal partner as we work to advance digital asset capabilities. By combining their reach with Coinbase’s leadership in digital assets, we’re creating solutions that can simplify and expand access to digital asset payments. This collaboration reflects our commitment to building the infrastructure needed for the next generation of financial services.”
Citigroup Inc. (NYSE:C) is an American financial services company that offers a huge portfolio of products to individuals, businesses, governments, and institutions. Its operations are spread across five segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth.
6. S&P Global Inc. (NYSE:SPGI)
Number of Hedge Fund Holders: 110
Dividend Yield as of November 28: 0.77%
S&P Global Inc. (NYSE:SPGI) is one of the best dividend stocks in the financial sector. On November 14, Jeffrey Silber from BMI Capital reiterated a Buy call on SPGI, and moved up the price target from $538 to $546.
In a separate business update dated November 13, S&P Global Inc. (NYSE:SPGI) reported that its board has approved a share buyback program of up to 30 million units of stock. Earlier, the company disclosed an accelerated share repurchase (ASR) worth $2.5 billion, which would initiate in Q4 2025 after its investor day. S&P aims to return nearly 85% of its adjusted free cash flow to shareholders, either via dividend payouts or stock buybacks.
S&P Global Inc. (NYSE:SPGI), headquartered in New York, provides credit ratings, market indices, data, and analytics across the financial, energy, and automotive sectors. The company operates through five business divisions: Market Intelligence, Ratings, Energy, Mobility, and Dow Jones Indices.
5. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 111
Dividend Yield as of November 28: 2.09%
Bank of America Corporation (NYSE:BAC) is one of the best dividend stocks in the financial sector. On November 17, Barclays analyst Jason Goldberg maintained a Buy recommendation on Bank of America stock, with a $59 price target.
In a separate company announcement, dated November 13, Bank of America shared that it is debuting 401k Pay, which is an innovative digital solution to easily and efficiently transform 401k assets into retirement funds. The service became available on November 17, with no additional fee for the company’s sponsors or clients. 401k Pay is a one-stop solution that provides record management, multiple deposit options, and investing tips. The users can conveniently deposit and follow their earnings till retirement.
Lorna Sabbia, who is the Head of Workplace Benefits at Bank of America Corporation (NYSE:BAC), commented regarding the digital solution:
“401k Pay was developed hand-in-hand with our corporate clients who wanted to offer their employees a retirement income solution. Including retirement income resources like 401k Pay as part of their workplace benefits offerings provides employers with the opportunity to improve financial outcomes for their employees and can help drive real business results – including helping to improve productivity, employee job satisfaction and retention.”
Bank of America is a financial institution that caters to consumers, businesses, institutional investors, and government clients. Its operations are divided into four segments: Consumer Banking, Global Wealth and Investment Management, Global Banking, and Global Markets.
4. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 120
Dividend Yield as of November 28: 1.92%
JPMorgan Chase & Co. (NYSE:JPM) is one of the best dividend stocks in the financial sector. On November 12, Erika Najarian remained bullish on JPM, assigning the stock a Buy call along with a price target of $357.
In a different corporate update, JPMorgan announced a large-scale initiative that aims to restrict fraud and scams, via educating and informing consumers, preventative measures, public awareness, and operational improvements developed to prevent fraud attempts. In the week beginning November 17, Chase planned to carry out more than 20 workshops countrywide, which are accessible to the public free of cost. In 2024, the bank was successful in protecting its clients from fraudulent attacks, averting around $12 billion in losses.
JPMorgan Chase & Co. (NYSE:JPM)’s new initiatives to limit fraudulent activity include real-time scam warnings backed by the latest technology, a trusted-contact feature, a Scam Interruption Team, a close partnership with law enforcement agencies, and continuous training for employees.
JPMorgan is a financial services firm offering retail banking, lending, credit cards, mortgages, and payment services. The company was founded in 1799 and is based in New York.
3. Capital One Financial Corporation (NYSE:COF)
Number of Hedge Fund Holders: 129
Dividend Yield as of November 28: 1.46%
Capital One Financial Corporation (NYSE:COF) is one of the best dividend stocks in the financial sector. On November 20, UBS analyst Erika Najarian reaffirmed a Buy call on Capital One Financial, lifting the price target to $270.
Separately, in a Reuters report dated November 18, the Federal Deposit Insurance Corporation (FDIC) sued Capital One for falling roughly $100 million short in its required payments to support the depositor bailout for the 2023 failures of Silicon Valley Bank and Signature Bank. Two months prior to this case, COF issued a lawsuit against FDIC, saying the agency tried to collect $149.2 million in excess charges.
The main issue is whether Capital One skipped a $56 billion balance shared between two subsidiaries when reporting its uninsured deposits to regulators. However, the FDIC mentioned in its countersuit that because the bank excluded the $56 billion position, it reported a $324.84 million assessment for the collapsed banks instead of the actual $474.08 million. The regulator said almost $99.4 million has not been paid yet.
In July 2025, Capital One estimated that it might need $200 million for this matter and earmarked funds for it.
Capital One Financial Corporation (NYSE:COF) was established in 1988 and is based in McLean, Virginia. The financial services company provides banking, lending, and credit products in the United States, Canada, and the United Kingdom.
2. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 136
Dividend Yield as of November 28: 0.55%
Mastercard Incorporated (NYSE:MA) is one of the best dividend stocks in the financial sector. On November 10, Bernstein analyst Harshita Rawat assigned a Buy rating on Mastercard, setting a target price of $607.
In a different business update, on November 13, Mastercard and Ukraine’s Government reached a Memorandum of Understanding (MoU) to initiate Digital Country Partnership in Ukraine. The agreement was finalized on November 12, as the Rebuild Ukraine Conference in Warsaw approaches.
Oleksii Sobolev, the Ukrainian Minister of Economy, Environment and Agriculture, and Inga Andreieva, who is Mastercard’s country manager in Ukraine and Moldova, signed the MoU. Tucker Foote, the company’s Chief Government Affairs and Policy Officer, was also present during the signing.
This Memorandum is meant to quicken Ukraine’s digital roadmap by utilizing Mastercard’s innovative payment solutions, digital ecosystem, and cybersecurity expertise.
The partnership between Ukraine and Mastercard aims to improve the country’s digital economy through higher financial inclusion, modernizing transport and tourism with digital systems, strengthening cybersecurity and AI-driven innovation, and advancing cybersecurity across critical platforms. The agreement outlines a five-year plan for carrying out planned initiatives under the Digital Country Partnership program.
1. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 179
Dividend Yield as of November 28: 0.80%
Visa Inc. (NYSE:V) is one of the best dividend stocks in the financial sector. On November 24, Trevor Williams, a Jefferies analyst, assigned a Buy recommendation on Visa. Williams set a price target of $410 on the stock.
In a different business update, dated November 25, Visa made an agreement with the M7 World Championship, which is its initial foray into Mobile Legends: Bang Bang (MLBB) e-sports. MLBB remains one of the most famous mobile games worldwide. Visa, being its official payment partner, will improve payment gateways to provide secure transactions. The step fits into the company’s broader strategy to connect with youth and expand financial inclusion using technology.
Visa is partnering with MOONTON Games to allow MLBB users access to seamless esports experiences. As roughly 60% of MLBB’s 1.5 billion players range between the ages of 19 to 32, the collaboration goes beyond just gaming. It also supports young players by making their digital transactions safer and smoother.
While we acknowledge the potential of V to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than V and that has 100x upside potential, check out our report about this cheapest AI stock.
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