5 Dividend Stocks to Buy in the Financial Services Sector

2. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 137
Dividend Yield as of September 13: 0.58%

Mastercard Incorporated (NYSE:MA) is an American multinational financial services corporation that specializes in payment and credit card services. In Q2 2022, the company was popular among 137 elite funds, compared with 136 in the previous quarter, according to Insider Monkey’s data. The stakes owned by these hedge funds hold a consolidated value of roughly $15 billion.

In Q2 2022, Mastercard Incorporated (NYSE:MA) reported strong financials as its free cash flow grew to $2.2 billion, from $1.48 billion in the previous quarter. The company paid $477 million in dividends during the quarter, which shows that dividends are stable due to strong free cash flow generation. Its revenue for the quarter came in at $5.5 billion, which presented a 21.4% year-over-year growth.

Mastercard Incorporated (NYSE:MA) has been raising its dividends consistently for the past eight years consistently. Its current quarterly dividend stands at $0.49 per share, with a dividend yield of 0.58%, as recorded on September 13.

Deutsche Bank raised its price target on Mastercard Incorporated (NYSE:MA) in September to $440 and maintained its Buy rating on the shares. The firm highlighted the company’s trends in cryptocurrency and blockchain technology.

Baron Funds mentioned Mastercard Incorporated (NYSE:MA) in its Q2 2022 investor letter. Here is what the firm has to say:

“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Mastercard Incorporated (NYSE:MA) added the most value. These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”