5 Best Financial Dividend Stocks To Invest In

In this article, we discuss 5 best financial dividend stocks to invest in. If you want to read our detailed analysis of the financial sector and its performance in the past, go directly to read 13 Best Financial Dividend Stocks To Invest In.

5. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 88

The Charles Schwab Corporation (NYSE:SCHW) is an American financial services company that mainly operates in the investment and brokerage sector. On July 28, the company declared a quarterly dividend of $0.25 per share, which was in line with its previous dividend. With a dividend yield of 1.73% as of August 23, SCHW is one of the best dividend stocks on our list.

In the second quarter of 2023, The Charles Schwab Corporation (NYSE:SCHW) reported revenue of $4.66 billion, which beat analysts’ estimates by $45 million. Its total client assets exceeded $8 trillion.

At the end of Q2 2023, 88 hedge funds in Insider Monkey’s database reported having stakes in The Charles Schwab Corporation (NYSE:SCHW), up from 87 in the previous quarter. The collective value of these stakes is over $4 billion.

Weitz Investment Management mentioned The Charles Schwab Corporation (NYSE:SCHW) in its Q2 2023 investor letter. Here is what the firm has to say:

“Lastly, we elected to sell our shares of The Charles Schwab Corporation (NYSE:SCHW) as the regional bank crisis unfolded during the first quarter. That sale crystalized underperformance that will likely linger on our top detractor list as we move through the year, despite no longer impacting our forward-looking performance.”

4. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 90

Bank of America Corporation (NYSE:BAC) is next on our list of the best dividend stocks from the financial sector. The company currently pays a quarterly dividend of $0.24 per share, having raised it by 9.1% in July this year. It has been making regular dividend payments to shareholders since 1999. The stock has a dividend yield of 3.39%, as of August 23.

As of the close of Q2 2023, 90 hedge funds tracked by Insider Monkey owned investments in Bank of America Corporation (NYSE:BAC), worth collectively over $31.7 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q2.

3. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 106

JPMorgan Chase & Co. (NYSE:JPM) is a multinational financial services firm that offers a wide range of banking and financial products and services to individuals, businesses, and institutions. In the second quarter of 2023, the company posted revenue of $41.3 billion, which showed a 34.5% growth from the same period last year. During the quarter, it returned $2.9 billion to shareholders through dividends, which makes it one of the best dividend stocks on our list.

JPMorgan Chase & Co. (NYSE:JPM) currently pays a quarterly dividend of $1 per share and has a dividend yield of 2.73%, as recorded on August 23.

At the end of June 2023, 106 hedge funds in Insider Monkey’s database were bullish on JPMorgan Chase & Co. (NYSE:JPM). The stakes owned by these hedge funds have a collective value of over $4.38 billion.

2. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 139

Mastercard Incorporated (NYSE:MA) is a global financial technology company that provides payment processing and related services. The company offers a quarterly dividend of $0.57 per share and has a dividend yield of 0.57%, as of August 23. It is one of the best dividend stocks on our list as it maintains a 10-year streak of consistent dividend growth.

Mastercard Incorporated (NYSE:MA) was a part of 139 hedge fund portfolios at the end of Q2 2023, up from 138 in the previous quarter, as per Insider Monkey’s database. The consolidated value of stakes owned by these hedge funds is over $14.7 billion.

Baron Funds mentioned Mastercard Incorporated (NYSE:MA) in its Q2 2023 investor letter. Here is what the firm has to say:

“We modestly trimmed Visa Inc., Mastercard Incorporated (NYSE:MA), and Accenture plc to manage the position sizes and raise capital to fund purchases elsewhere. These stocks remain full-sized positions and high-conviction ideas in the Fund.

Another fintech industry trend we’re seeing is a pickup in M&A activity, most notably in the payments sector. The year started with Nuvei’s $1.3 billion acquisition of Paya announced in January. In April, Network International received an initial takeover offer from a group of private equity firms, which was then topped by Brookfield Asset Management whose $2.8 billion offer was accepted by the Board in June. Following reports earlier this year of a bidding war between Visa Inc. and Mastercard Incorporated to acquire cloud-based issuer processor and core banking software provider Pismo.”

1. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 171

Visa Inc. (NYSE:V) tops our list of the best dividend stocks from the finance sector. The American financial services company has been growing its dividends consistently since 2008. It currently pays a quarterly dividend of $0.45 per share and has a dividend yield of 0.75%, as of August 23.

At the end of the June quarter of 2023, 171 hedge funds tracked by Insider Monkey owned investments in Visa Inc. (NYSE:V), worth collectively nearly $25 billion.

Baron Funds mentioned Visa Inc. (NYSE:V) in its Q2 2023 investor letter. Here is what the firm has to say:

“We modestly trimmed Visa Inc. (NYSE:V), Mastercard Incorporated, and Accenture plc to manage the position sizes and raise capital to fund purchases elsewhere. These stocks remain full-sized positions and high-conviction ideas in the Fund.

Another fintech industry trend we’re seeing is a pickup in M&A activity, most notably in the payments sector. The year started with Nuvei’s $1.3 billion acquisition of Paya announced in January. In April, Network International received an initial takeover offer from a group of private equity firms, which was then topped by Brookfield Asset Management whose $2.8 billion offer was accepted by the Board in June. Following reports earlier this year of a bidding war between Visa Inc. and Mastercard Incorporated to acquire cloud-based issuer processor and core banking software provider Pismo, Visa announced its intention to acquire the Brazilian company for $1 billion in late June.”

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