Financial service companies’ profitability tends to be tied to the economic cycle. These companies provide services ranging from consumer finance to investment banking. During downturns, financial services companies tend to be hit the hardest as net interest margins shrink and credit losses grows. However, during prosperous times, they report robust profits and many pay attractive dividends. I’ve identify the following financial stocks paying high income, which may increase the value of your portfolio.
MyState Limited (ASX:MYS)
MYS has a large dividend yield of 5.78% and pays out 83.71% of its profit as dividends . MYS is among the markets top 25% of dividend payers, which is certainly enticing for interested investors.
AUB Group Limited (ASX:AUB)
AUB has a solid dividend yield of 3.18% and has a payout ratio of 81.29% . AUB’s dividends have seen an increase over the past 10 years, with payments increasing from $0.15 to $0.42 in that time. To the enjoyment of shareholders, the company hasn’t missed a payment during this period.
Carlton Investments Limited (ASX:CIN)
CIN has a good dividend yield of 3.48% and pays out 77.42% of its profit as dividends . In the last 10 years, shareholders would have been happy to see the company increase its dividend from $0.6 to $1.16. They have been consistent too, not missing a payment during this 10 year period. Investors will be glad to know the company has maintained a positive earnings growth over the last few years. It’s eps growth rate over the past five years has been 5.92%.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.