3 US financial stocks to watch after rate hike

By - Mridul Gogoi


  • Visa Inc. (NYSE: V) holds a dividend yield of 0.866 per cent.
  • JP Morgan Chase has a market cap of US$ 381.60 billion.
  • JP Morgan Chase posted a net income of US$ 9.7 billion in Q3 2022.

The Federal Reserve committee has raised its benchmark rate by half a percentage point. It appears that the Feds will likely continue with further rate hikes. Historically, financial companies have benefited from rising interest rates. However, as this year was full of surprises, anything can happen and it is advisable to research thoroughly before investing in the market.

Market participants were pleased with a lower CPI in November than the previous month. Some analysts believe that the Central Bank will be dovish in its approach in 2023, which might uplift the equity market.

Amid these developments, let us look at three US financial stocks and how they have performed in the latest quarter:

Visa Inc. (NYSE: V)

The largest payment processor globally, Visa Inc. has operations in more than 200 countries transacting in over 600 currencies. Visa holds a dividend yield of 0.866 per cent and paid a dividend of US$ 0.45 per share.

The US$ 440.27 billion market cap company has an EPS of 6.99 and its P/E ratio is 30.50.

Visa reported cash and cash equivalent of US$ 14,047 million in the fourth quarter of fiscal 2022. Meanwhile, the total assets increased to US$ 85,410 million from US$ 82,896 million in Q4 2021..

Also, the net revenues in Q4 2022 were US$ 7,275 million versus US$ 6,130 million in the year-ago quarter. The net income of Visa jumped to US$ 3,411 million from US$ 2,575 million in the same comparable period.

JPMorgan Chase & Co. (NYSE: JPM)

The largest and most comprehensive financial organization in the US JPMorgan Chase has a market cap of US$ 381.60 billion. With a dividend yield of 3.075, JPMorgan paid a quarterly dividend of US$ 1 apiece, which is next payable on January 31, 2023.

In its Q3 2022 financial report, JPMorgan posted a net income of US$ 9.7 billion compared to a loss of US$ 2 billion in Q3 2021. The bank’s net interest income in the third quarter of 2022 was US$ 17.6 billion compared to US$ 4.4 billion in the same quarter in 2021. The managed revenue in the reported quarter was US$ 33.5 billion.

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Mastercard Incorporated (NYSE: MA)

Mastercard ranks second among the largest payment processors in the world. With a three-year dividend growth of 15.90, Mastercard holds a dividend yield of 0.566. The US$ 332.90 billion market cap company has an EPS of 10.01, and a P/E ratio is 35.70.

In the fourth quarter of 2022, Mastercard reported net revenue of US$ 5,756 million compared to US$ 4,985 million in the year-ago quarter. The payment processor’s net income in the reported quarter was US$ 2,499 million versus US$ 2,414 in the same period a year ago.

Bottom line:

The volatility in the market is still very real, and investors should not get carried away with temporary highs. Always do your due diligence before deciding on your portfolio. It is better to incorporate a long-term strategy along with a diversification approach. It will ensure that there is no loss of your hard-earned money, and your portfolio is also safe for the long run.