For the banking industry, conservatism is rewarded over the long haul. The Great Recession caused plenty of pain among the banks operating in less-than-ideal sectors, while today’s market has the potential for similar results. For our newest Best Dividend Stocks Model Portfolio pick, its long history of playing it safe has allowed it to grow and reward shareholders throughout its history. The latest being a 4%+ increase to its dividend.
Ultimately, our pick is a strong play on traditional banking that uses its size to leverage itself across a variety of product lines As one of the largest money-centered banks in the nation, our pick features a plethora of retail and commercial banking deposits, loans and other assets. But unlike many of its rivals, our pick avoided many of the risky mortgages, toxic assets and prop-trading that eventually hurt the industry. This has helped keep its cash flow safe and its capital requirements low.
And with a focus on wealth management and strong loan underwriting, our pick has continued to support and reward its shareholders. This includes one of the biggest investors around – Warren Buffett.
In the end, our latest banking pick represents the cream of the crop in the sector.
Apart from adding the money-center bank pick, we’ve added a technology infrastructure stock as well as removed a smaller regional bank and a utility firm from the portfolio.
You can check out the Best Dividend Stocks Model Portfolio to explore all the stocks.
