5 Dividend Stocks to Buy in the Financial Services Sector

In this article, we discuss 5 dividend stocks to buy in the financial services sector. If you want to read our detailed analysis of the financial services sector’s performance and the recent market selloff as well as the risk/reward and methodology of this list, go directly to read 10 Dividend Stocks to Buy in the Financial Services Sector.

5. The Goldman Sachs Group, Inc. (NYSE:GS)

Number of Hedge Fund Holders: 69
Dividend Yield as of September 13: 2.92%

The Goldman Sachs Group, Inc. (NYSE:GS) is a multinational investment bank and financial services company that provides a wide range of financial services to its consumers. In July, BMO Capital reiterated its Outperform rating on the stock with a $461 price target, highlighting the company’s impressive revenue-driven beat and improving profitability.

In Q2 2022, The Goldman Sachs Group, Inc. (NYSE:GS) reported strong earnings, beating Street estimates. The company posted a GAAP EPS of $7.73 and revenue of $11.86 billion, which surpassed consensus by $1.04 and $1.16 billion, respectively. At the end of the quarter, the company had $288 billion in cash and cash equivalents, up from $274 billion in the previous quarter. It returned $1.22 billion to shareholders during the quarter, $719 million of which accounted for dividend payments.

On July 18, The Goldman Sachs Group, Inc. (NYSE:GS) declared a 25% hike in its dividends, which takes its quarterly payout to $2.50 per share. This was the company’s 10th consecutive year of dividend growth. As of September 13, the stock’s dividend yield came in at 2.92%.

At the end of Q2 2022, 69 hedge funds tracked by Insider Monkey owned stakes in The Goldman Sachs Group, Inc. (NYSE:GS), down from 71 in the previous quarter. These stakes have a collective value of over $4.6 billion. Eagle Capital Management was the company’s leading stakeholder in Q2.

GoodHaven Capital Management mentioned The Goldman Sachs Group, Inc. (NYSE:GS) in its Q2 2022 investor letter. Here is what the firm has to say:

“We also initiated a position in The Goldman Sachs Group, Inc. (NYSE:GS) at an inexpensive valuation and are attracted by the potential durability of the company’s ability to generate high returns on equity driven in part by the growth in their existing and new franchises.”