The finance industry is known for featuring reliable investments and paying strong dividends.
However, not many financial stocks are expected to skyrocket in price over a short period of time.
Nevertheless, there are some stocks that are projected to sharply trend upward and continue to reward shareholders with a strong dividend yield.
Basically, investing in a stock with a strong Momentum grade as well as a high dividend yield can result in increased income from your investments. Zacks customers are able to utilize our premium screening tool to discover stocks that possess an “A” grade for Momentum and a large dividend yield.
We expect these stocks to increase in price, which in turn, amplifies its dividend payments.
Check out these 4 income-heavy finance stocks to buy now:
Raymond James Financial, Inc. (RJF)
Raymond James Financial, Inc. (NYSE:RJF) is a holdings company in the securities brokerage business that has watched its share price increase by 50.13% over the past year. Raymond James currently has an “A” grade for Momentum and pays a 1.11% dividend. Also, Raymond James has a track record of rewarding its shareholders; the company raised its quarterly dividend by 10% last year and sponsored an effective share repurchase authorization program.
Projected EPS and sales growth currently stands at 27.73% and 17.17%, respectively, both of which compare favorably to the industry. Raymond James also sports a Zacks Rank #1 (Strong Buy) right now.
ING Groep NV (ADR) (ING)
ING Groep NV (ADR) (NYSE:ING) is an international financial institution that offers banking, insurance, and asset management to over 50 million private, corporate, and institutional clients. ING Group has received an “A” grade for Momentum while paying an impressive dividend of 3.46% to its shareholders. The company’s net margin stands at 25.61% compared to an industry average of 4.77%, which means that this company is retaining considerably more profit that its competitors.
Further, ING Group’s stock price has increased 14.54% over the past 12 weeks compared to 1.91% industry-wide. ING Group has earned a Zacks Rank #1 (Strong Buy) and is projected to increase in value while continuing to reward its shareholders with a respectable dividend yield.
Moelis & Co (MC)
Moelis & Co (NYSE:MC) is a global independent investment bank. Its strong dividend yield of 3.80% and “A” grade for Momentum projects a bright future for shareholders who seek a steady income from equity investments. Even with a large 3.80% dividend yield, the company’s Cash Flow per share currently stands at $4.15, which compares favorably to the industry average of $1.62. This means that the investment bank aims to utilize shareholder money in an efficient and effective manner.
Moelis & Company features a RoE of 46.73%, which towers over the industry average of 8.97%. Also, in the past 60 days, its full-year EPS estimates have increased by 10.22% to $2.05. Moelis & Company scored a Zacks Rank#1 (Strong Buy) due to its improved earnings estimates.
Southside Bancshares, Inc. (SBSI)
Southside Bancshares, Inc. (NASDAQ:SBSI) is primarily engaged in commercial banking and providing trust services. The company pays a strong 3.13% dividend and currently holds an “A” grade in the Momentum Style Score category. Shares of SBSI have increased 6.81% in the past 4 weeks. Furthermore, Moelis & Company currently holds a beta rating of 0.81, which means that the investment is expected to be less volatile.
Additionally, Southside Bancshares is beating their competitors with a net margin of 24.40% and current cash flow growth of 11.05%. Southside Bancshares also sports a respectable P/E ratio of 16.03. Southside Bancshares has been given a Zacks Rank #1 (Strong Buy).
Finding stocks in the right trading or investing style that is best suited for you, is one of the keys for consistently making money in the market. In addition to that, you’ll likely find yourself with less stress, and having more fun while doing so. Plus, finding the right stocks to buy will suddenly become much easier.
Remember, the Zacks Rank remains the first step in your stock selection success, while the Zacks Style Scores are the next and final step to lock in your biggest winners. Focus in on stocks with a Zacks Rank #1 or #2. Then key in on those with a Zacks Style Score of A or B for your preferred trading style.
It truly has never been easier and more profitable to find the best Zacks Rank stocks than now.
To screen for the stocks you’re interested in—and access even more proven tools and resources—start your 30-day free trial to Zacks Premium.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report