Top dividend paying financial stocks to consider

Summary

  • Prospect Capital (NASDAQ: PSEC) has a dividend yield of 8.58%
  • First Horizon’s (NYSE: FHN) current dividend yield is 3.55%, an increase of about 89% in one year.
  • Valley Bancorp’s (NASDAQ: VLY) dividend yield is 3.3%, consolidated assets were US$ 41.178 billion.

Banks faced restrictions last year on paying dividends and share buyback due to the economic downturn and tight cash positions. But after their strong performance in the last quarter of 2020, the Federal Reserve removed the limits on payouts in June this year following banks' stress test.

Here we explore top six dividend-paying bank stocks in the market.

Prospect Capital Corporation (NASDAQ: PSEC) is a financial service company that generate current income from long-term capital appreciation through equity and debt instruments. Prospect lends to middle-market privately held companies as well as invest in them.

Its market capitalization is US$ 3.2 billion, with a P/E ratio of 3.55. PSEC’s dividend yield is 8.58%, and its annualized dividend payout is US$0.72.

It generates income from interest on debt securities, stock dividends, and fees from deals.

Its total revenue was US$126.68 million, and net income attributable to common shareholders was US$246 million for the March quarter, 2021.

PSEC stock rose 67% in one year at the close of US$8.26 on July 13, 2021.

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Source: Pixabay

First Horizon Corporation (NYSE: FHN) owns the First Tennessee Bank. It was incorporated in 1968. First Horizon is headquartered in Memphis, Tennessee. 

First Horizon's market capitalization is US$ 9.1 billion, with a P/E ratio of 8.49. The dividend yield of the company is 3.55%, and the annualized dividend is US$0.60.

Its total revenue for the March quarter of 2021 was US$ 850 million, while the net income attributable to common shareholders was US$225 million. For FY 2020, 53% of its consolidated revenue came from net interest income and 47% from fee and non-interest income.  

It reported total consolidated assets of US$87.5 billion at the end of the March quarter of 2021.

The stock closed at US$16.47 on July 13, 2021, an increase of around 89% in one year.

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US Bancorp (NYSE: USB) is a financial company based in Minnesota. USB provides various services, including cash management, capital markets, lending and depository services, and trust and investment management services.

Its market capitalization is US$ 84.79 billion. USB current dividend yield is 2.92%, and an annualized dividend is US$ 1.68. Its P/E ratio is 14.98.

For the March quarter of 2021, its reported revenue of US$ 5.7 billion and a net income of US$ 2.18 billion. The total consolidated assets were US$ 553.38 billion at the end of the March quarter, 2021.

The stock price achieved 57% in one year and closed at US$56.92 on July 13, 2021.

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Bank of America Corporation (NYSE: BAC) is major bank in the US and offers various banking and investment management services. Its total consolidated assets were US$2.97 trillion at the end of the March quarter of 2021.

BAC's current market capitalization is US$343.9 billion, and a P/E ratio of 17.11. The bank has been paying dividends for a long time. Its dividend yield is 1.77%, with an annualized dividend of US$0.72.

The revenue for the March quarter was US$24 billion, and net income was US$7.56 billion, attributable to common shareholders.

The stock closed at US$39.86 on July 13, 2021, with a gain of 65% in one year.

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Source: Pixabay

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PNC Financial Services Group, Inc. (NYSE: PNC) provides retail banking services like loans and asset management to individual, corporate and institutional clients.

PNC has a market capitalization of US$80.41 billion and a P/E ratio of 9.88. Its dividend yield is 2.4%, and its annualized dividend is US$5.00.

Its consolidated assets at the end of March quarter were US$474.4 billion. The revenue for the same quarter was US$ 4.36 billion, and net income was US$1.76 billion.

The stock price grew nearly 87% in one year. It was priced at US$189.28 at the close on July 13, 2021.

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Valley National Bancorp (NASDAQ: VLY) is headquartered in New York. Its wholly-owned subsidiary is Valley National Bank and provides complete banking solutions through its retail, commercial, wealth management, insurance, and financial services products.

Valley Bancorp's dividend yield is 3.3%, and the annualized dividend is US$ 0.44. It has a market capitalization of US$ 5.33 billion and a P/E ratio of 12.99.

The revenue for the March quarter of 2021 was US$ 363 million, and net income of US$ 112.5 million. Valley Bancorp's total consolidated assets were US$ 41.178 billion at the end of the abovementioned quarter of 2021.

VLY stock rose 86% in one year. They stock closed at US$ 13.01 on July 13, 2021.  

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

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