Financial service companies’ profitability tends to be tied to the economic cycle. Firms in this sector offer services ranging from investment banking to consumer finance. Downturns can hit financial services companies hard as net interest margins shrink and credit losses grow. However, in good times, they report steady profits and many pay attractive dividends. As a long term investor, I favour these financial stocks with great dividend payments that continues to add value to my portfolio.
Advanced Share Registry Limited (ASX:ASW)
ASW has a juicy dividend yield of 5.38% and their payout ratio stands at 100.91% . ASW’s dividends have increased in the last 10 years, with DPS increasing from $0.015 to $0.042. It should comfort existing and potential future shareholders to know that ASW hasn’t missed a payment during this time. Advanced Share Registry seems reasonably priced when looking at its PE ratio (18.7). The industry average suggests that AU Capital Markets companies are more expensive on average 22.2. Dig deeper into Advanced Share Registry here.
Fiducian Group Limited (ASX:FID)
FID has a good dividend yield of 3.33% and their current payout ratio is 66.56% . Despite there being some hiccups, dividends per share have increased during the past 10 years. Analysts are optimistic on the company’s future earnings growth, estimating a 74.48% increase in the next three years. Interested in Fiducian Group? Find out more here.
Auswide Bank Ltd (ASX:ABA)
ABA has an alluring dividend yield of 5.97% and distributes 83.02% of its earnings to shareholders as dividends . ABA’s dividend is not only above the low risk savings rate, but also amongst the top dividend payers in the market. More on Auswide Bank here.
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.