10 Bank Stocks with +3% Yields
by InvestorPlace Staff | July 22, 2010 6:54 pm
Financial stocks have been in focus after earnings from heavyweights Goldman Sachs (NYSE: GS[1]), JP Morgan Chase (NYSE: JPM[2]), Bank of America (NYSE: BAC[3]) and others. Earnings at these top banks have apparently taken a hit as profits from their trading divisions have lagged.
But investors shouldn’t have to count on the investment arm of a big bank to make money. There are a number of high yield dividend stocks in the financial sector which offer plenty of payback no matter what the market does. These are financial stocks with big dividends that have managed to maintain high yields even as other financials have cut or eliminated their payouts in the wake of the financial crisis.
Here are 10 financial stocks with a dividend yield of +3.0% or better to help deliver a steady flow of cash to your bank account.
Bank of Montreal (BMO)
Market Cap: $32.2 billion
Annual Dividend: $2.80
Dividend Dividend Yield: 4.5%
Interestingly, Bank of Montreal (NYSE: BMO[4]) is based in Toronto, and offers a range of credit and non-credit products and services to its clients through international offices, branches and subsidiaries. With 900 banks operating in Canada, BMO has seen an +8.3% rise in stock price since January compared with a decline in the broader markets. Bank of Montreal has paid a dividend for 181 years and is set to pay shareholders another $0.70 in its next upcoming quarterly dividend Aug. 26.
Bank of Nova Scotia (BNS)
Market Cap: $48.8 billion
Annual Dividend: $1.96
Dividend Yield: 3.8%
The Bank of Nova Scotia (NYSE: BNS[5]) offers products and services, including retail, commercial, corporate and investment banking to customers in nearly 50 countries world wide. Founded in 1832, BNS has been paying a dividend since 1834. The Bank’s stocks are up slightly in 2010, having seen an increase of +1.8% since January. A quarterly dividend of $0.49 will be paid to shareholders on July 28.
Blackstone Group (BX)
Market Cap: $3.6 billion
Annual Dividend: $0.40
Dividend Yield: 3.8%
Headquartered in New York City, the Blackstone Group (NYSE: BX[6]) manages private capital and provides financial advisory services for its clients. Blackstone has not fared particularly well as of late, and is down -26.4% since the start of April. However, this relatively new dividend stock recently paid shareholders $0.10 per share on May 31.
Canadian Imperial Bank (CM)
Market Cap: $25.1 billion
Annual Dividend: $3.48
Dividend Yield: 5.0%
Based out of Toronto, Canadian Imperial Bank (NYSE: CM[7]) is a diversified financial institution. CM serves its clients through two separate business lines, CIBC Retail Markets and Wholesale Banking. Canadian Imperial Bank has paid a dividend since 1890 and will give shareholders $0.87 per share on July 28. While it has seen numerous ups and downs throughout 2010, CM is currently down -1% on the year, with a stock price of $63.99.
M&T Bank (MTB)
Market Cap: $10.1 billion
Annual Dividend: $2.80
Dividend Yield: 3.2%
M&T Bank (NYSE: MTB[8]) is a bank holding company that offers a wide range of commercial banking, trust and investment services to its customers. M&T has fared quite well in 2010 and is up 24.8% with a stock price of $83.50. The Buffalo based company paid a dividend of $0.70 on June 30, and has been paying a dividend to shareholders for 31 years.
Manulife Financial (MFC)
Market Cap: $21.5 billion
Annual Dividend: $0.52
Dividend Yield: 3.4%
Financial service group Manulife Financial (NYSE: MFC[9]) provides financial protection and wealth management products to individual and group customers in 22 different countries. Individual life insurance, group life and health insurance, long-term care services, pension products, annuities, mutual funds and banking products are all provided by Manulife. Having paid shareholders a dividend of $0.13 on June, 21, Manulife’s stock has slid nearly -21% since January and currently sits at $14.51 per share.
Marsh & McLennan (MMC)
Market Cap: $12.2 billion
Annual Dividend: $0.80
Dividend Yield: 3.5%
Marsh & McLennan (NYSE: MMC[10]) is a New York City based global professional services firm that provides risk, strategy, and human capital advice to its clients. MMC has seen a -4.1% increase in stock price year-to-date. On Aug. 18, Marsh & McLennan will be paying shareholders a dividend of $0.20, good for a 3.5% yield.
Royal Bank of Canada (RY)
Market Cap: $72.3 billion
Annual Dividend: $2.00
Dividend Yield: 3.7%
Diversified financial service company Royal Bank of Canada (NYSE: RY[11]) provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services on a global basis. RY will pay a dividend of $0.50 on Aug. 24. Down -6.5% for 2010, Royal Bank has fared slightly worse than the Dow Jones Industrial Average which is down -1.1% and the S&P which is down -2.1%.
Sun Life Financial Inc. (SLF)
Market Cap: $14.3 billion
Annual Dividend: $1.44
Dividend Yield: 5.4%
Sun Life Financial Inc. (NYSE: SLF[12]) offers a diverse range of life and health insurance, savings, investment management, retirement, and pension products and services to both individual and corporate customers. Based in Toronto, Sun Life has seen a return of -8.8% in 2010. Despite the decline, SLF did pay a relatively high dividend of $0.36 (5.4% yield) on June, 30.
Toronto Dominion Bank (TD)
Market Cap: $49.3 billion
Annual Dividend: $2.44
Dividend Yield: 3.4%
Toronto-Dominion Bank (NYSE: TD[13]) serves 17 million clients. One of its most major subsidiaries, TD Bank, may be more familiar to Americans. TD has had a very productive year so far, and is up nearly 9% since January. Aside from the stock climb, TD shareholder’s will also be enjoying a $0.61 dividend payment on July, 31.
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Financial stocks have been in focus after earnings from heavyweights Goldman Sachs (NYSE: GS[1]), JP Morgan Chase (NYSE: JPM[2]), Bank of America (NYSE: BAC[3]) and others. Earnings at these top banks have apparently taken a hit as profits from their trading divisions have lagged.
But investors shouldn’t have to count on the investment arm of a big bank to make money. There are a number of high yield dividend stocks in the financial sector which offer plenty of payback no matter what the market does. These are financial stocks with big dividends that have managed to maintain high yields even as other financials have cut or eliminated their payouts in the wake of the financial crisis.
Here are 10 financial stocks with a dividend yield of +3.0% or better to help deliver a steady flow of cash to your bank account.
Bank of Montreal (BMO)
Market Cap: $32.2 billion
Annual Dividend: $2.80
Dividend Dividend Yield: 4.5%
Interestingly, Bank of Montreal (NYSE: BMO) is based in Toronto, and offers a range of credit and non-credit products and services to its clients through international offices, branches and subsidiaries. With 900 banks operating in Canada, BMO has seen an +8.3% rise in stock price since January compared with a decline in the broader markets. Bank of Montreal has paid a dividend for 181 years and is set to pay shareholders another $0.70 in its next upcoming quarterly dividend Aug. 26.
Bank of Nova Scotia (BNS)
Market Cap: $48.8 billion
Annual Dividend: $1.96
Dividend Yield: 3.8%
The Bank of Nova Scotia (NYSE: BNS) offers products and services, including retail, commercial, corporate and investment banking to customers in nearly 50 countries world wide. Founded in 1832, BNS has been paying a dividend since 1834. The Bank’s stocks are up slightly in 2010, having seen an increase of +1.8% since January. A quarterly dividend of $0.49 will be paid to shareholders on July 28.
Blackstone Group (BX)
Market Cap: $3.6 billion
Annual Dividend: $0.40
Dividend Yield: 3.8%
Headquartered in New York City, the Blackstone Group (NYSE: BX) manages private capital and provides financial advisory services for its clients. Blackstone has not fared particularly well as of late, and is down -26.4% since the start of April. However, this relatively new dividend stock recently paid shareholders $0.10 per share on May 31.
Canadian Imperial Bank (CM)
Market Cap: $25.1 billion
Annual Dividend: $3.48
Dividend Yield: 5.0%
Based out of Toronto, Canadian Imperial Bank (NYSE: CM) is a diversified financial institution. CM serves its clients through two separate business lines, CIBC Retail Markets and Wholesale Banking. Canadian Imperial Bank has paid a dividend since 1890 and will give shareholders $0.87 per share on July 28. While it has seen numerous ups and downs throughout 2010, CM is currently down -1% on the year, with a stock price of $63.99.
M&T Bank (MTB)
Market Cap: $10.1 billion
Annual Dividend: $2.80
Dividend Yield: 3.2%
M&T Bank (NYSE: MTB) is a bank holding company that offers a wide range of commercial banking, trust and investment services to its customers. M&T has fared quite well in 2010 and is up 24.8% with a stock price of $83.50. The Buffalo based company paid a dividend of $0.70 on June 30, and has been paying a dividend to shareholders for 31 years.
Manulife Financial (MFC)
Market Cap: $21.5 billion
Annual Dividend: $0.52
Dividend Yield: 3.4%
Financial service group Manulife Financial (NYSE: MFC) provides financial protection and wealth management products to individual and group customers in 22 different countries. Individual life insurance, group life and health insurance, long-term care services, pension products, annuities, mutual funds and banking products are all provided by Manulife. Having paid shareholders a dividend of $0.13 on June, 21, Manulife’s stock has slid nearly -21% since January and currently sits at $14.51 per share.
Marsh & McLennan (MMC)
Market Cap: $12.2 billion
Annual Dividend: $0.80
Dividend Yield: 3.5%
Marsh & McLennan (NYSE: MMC) is a New York City based global professional services firm that provides risk, strategy, and human capital advice to its clients. MMC has seen a -4.1% increase in stock price year-to-date. On Aug. 18, Marsh & McLennan will be paying shareholders a dividend of $0.20, good for a 3.5% yield.
Royal Bank of Canada (RY)
Market Cap: $72.3 billion
Annual Dividend: $2.00
Dividend Yield: 3.7%
Diversified financial service company Royal Bank of Canada (NYSE: RY) provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services on a global basis. RY will pay a dividend of $0.50 on Aug. 24. Down -6.5% for 2010, Royal Bank has fared slightly worse than the Dow Jones Industrial Average which is down -1.1% and the S&P which is down -2.1%.
Sun Life Financial Inc. (SLF)
Market Cap: $14.3 billion
Annual Dividend: $1.44
Dividend Yield: 5.4%
Sun Life Financial Inc. (NYSE: SLF) offers a diverse range of life and health insurance, savings, investment management, retirement, and pension products and services to both individual and corporate customers. Based in Toronto, Sun Life has seen a return of -8.8% in 2010. Despite the decline, SLF did pay a relatively high dividend of $0.36 (5.4% yield) on June, 30.
Toronto Dominion Bank (TD)
Market Cap: $49.3 billion
Annual Dividend: $2.44
Dividend Yield: 3.4%
Toronto-Dominion Bank (NYSE: TD) serves 17 million clients. One of its most major subsidiaries, TD Bank, may be more familiar to Americans. TD has had a very productive year so far, and is up nearly 9% since January. Aside from the stock climb, TD shareholder’s will also be enjoying a $0.61 dividend payment on July, 31.
Endnotes:
- GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
- JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
- BAC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAC
- BMO: http://studio-5.financialcontent.com/investplace/quote?Symbol=BMO
- BNS: http://studio-5.financialcontent.com/investplace/quote?Symbol=BNS
- BX: http://studio-5.financialcontent.com/investplace/quote?Symbol=BX
- CM: http://studio-5.financialcontent.com/investplace/quote?Symbol=CM
- MTB: http://studio-5.financialcontent.com/investplace/quote?Symbol=MTB
- MFC: http://studio-5.financialcontent.com/investplace/quote?Symbol=MFC
- MMC: http://studio-5.financialcontent.com/investplace/quote?Symbol=MMC
- RY: http://studio-5.financialcontent.com/investplace/quote?Symbol=RY
- SLF: http://studio-5.financialcontent.com/investplace/quote?Symbol=SLF
- TD: http://studio-5.financialcontent.com/investplace/quote?Symbol=TD
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Source URL: https://investorplace.com/2010/07/financial-stocks-yields/