Dividend.com has added a regional bank to the Best Dividend Stocks List and removed a top healthcare firm from the list.
We’ve all heard the saying, “only the strong survive.” And that’s never been truer than in the financial sector. After the Great Recession, credit crisis and mortgage mess, banks with risky profiles either went the way of the dodo or were eaten alive by their better-capitalized rivals. In the years since the crisis, those acquiring banks have only gotten stronger and that much larger. They’ve become powerhouses in the sector.
This includes our new Best Dividend Stocks List pick in the financial sector.
Starting out as a regional bank in the Northeast, our new pick used its conservatism during the crisis to grow exponentially. After buying out several troubled banks, our pick has grown to become one of the largest diversified financial services institutions in the United States – with billions in assets, operating branches and a full gamut of products/services. The best part is that the bank continues to be run very conservatively, which has allowed it to boost dividends, produce consistent profitability and prepare for the next downturn with ease.
But don’t think our new pick is stodgy and boring. Our pick has invested heavily in technology and fintech to streamline its operations, court new younger customers and improve its banking experience. These efforts have continued to pay off on several fronts and help future-proof the bank from any competition down the road.
With eight years’ worth of dividend growth, its operating profile, fiscal conservatism and operating strength, our new Best Dividend Stocks List pick is one bank that needs to be in your portfolio.
To summarize, here are five reasons why you should own this stock:
1. Has paid steady dividends since its founding in 1986 and increased its payout by 950% since the end of the Great Recession.
2. One of the largest full-service banks in the nation with more than $406 billion in assets and offices across 40 states.
3. Has smartly used fintech and technology investments to boost its bottom line and attract new customers to its system.
4. Fiscally conservative-run bank featuring a strong balance sheet and low loan default profile.
5. Low payout ratio of 40% and healthy yield of 3.22%.
