In this article, we will be looking at the 5 best finance stocks that pay dividends. If you want to see our detailed analysis of the finance sector, you can go directly to the 10 Best Finance Stocks that Pay Dividends.
5. Unum Group (NYSE: UNM)
Number of Hedge Fund Holders: 33
Dividend Yield: 4%
Unum Group (NYSE: UNM) offers financial protection benefit solutions in the US, the UK, and Poland. The company ranks 5th on our list of the best finance stocks that pay dividends.
In April, Barclays analyst Tracy Benguigui raised her price target on Unum Group (NYSE: UNM) shares from $23 to $26, keeping an Underweight rating on the shares.
In the first quarter of 2021, Unum Group (NYSE: UNM) had an EPS of $1.04, beating estimates by $0.06. The company’s revenue was $2.99 billion, also beating estimates by $14.72 million. Unum Group (NYSE: UNM) has also gained 9.33% in the past 6 months and 24.63% year to date.
By the end of the first quarter of 2021, 33 hedge funds out of the 866 tracked by Insider Monkey held stakes in Unum Group (NYSE: UNM) worth roughly $283 million. This is compared to 25 hedge funds in the previous quarter with a total stake value of approximately $218 million.
4. The Western Union Company (NYSE: WU)
Number of Hedge Fund Holders: 28
Dividend Yield: 4%
The Western Union Company (NYSE: WU) is a provider of money movement and payment services across the globe and operates through its Consumer-to-Consumer and Business Solutions segments. It ranks 4th on our list of the best finance stocks that pay dividends.
This July, Susquehanna analyst James Friedman commented on The Western Union Company (NYSE: WU), stating that investors are still not appreciating the true value of the company’s Western Union Digital asset. Friedman has also retained his Neutral rating and $26 price target on The Western Union Company (NYSE: WU) shares.
In the first quarter of 2021, The Western Union Company (NYSE: WU) had an EPS of $0.44, in line with estimates. The company’s revenue was $1.21 billion, up 1.68% year over year and also beating estimates by $15.12 million. The Western Union Company (NYSE: WU) has also gained 1.71% in the past 6 months and 6.66% year to date.
By the end of the first quarter of 2021, 28 hedge funds out of the 866 tracked by Insider Monkey held stakes in The Western Union Company (NYSE: WU) worth roughly $410 million. This is compared to 29 hedge funds in the previous quarter with a total stake value of approximately $491 million.
3. Huntington Bancshares Incorporated (NASDAQ: HBAN)
Number of Hedge Fund Holders: 27
Dividend Yield: 4.2%
Huntington Bancshares Incorporated (NASDAQ: HBAN), a regional bank holding company, provides consumer, small business, commercial, treasury management, wealth management, brokerage, trust, and insurance services through its Huntington National Bank and affiliates. The company has about $123 billion in assets and ranks 3rd on our list of the best finance stocks that pay dividends.
Keefe Bruyette’s David Konrad has taken over coverage of Huntington Bancshares Incorporated (NASDAQ: HBAN) this July with a Market Perform rating. Konrad also has a $15 price target on the company’s shares.
In the first quarter of 2021, Huntington Bancshares Incorporated (NASDAQ: HBAN) had an EPS of $0.48, beating estimates by $0.16. The company’s revenue was $1.37 billion, up 18.77% year over year and also beating estimates by $142.50 million. Huntington Bancshares Incorporated (NASDAQ: HBAN) has also gained 2.22% in the past 6 months and 10.03% year to date.
By the end of the first quarter of 2021, 27 hedge funds out of the 866 tracked by Insider Monkey held stakes in Huntington Bancshares Incorporated (NASDAQ: HBAN) worth roughly $154 million. This is compared to 29 hedge funds in the previous quarter with a total stake value of approximately $88.6 million.
2. Prudential Financial, Inc. (NYSE: PRU)
Number of Hedge Fund Holders: 37
Dividend Yield: 4.5%
Prudential Financial, Inc. (NYSE: PRU) is a provider of insurance, investment management, and other financial products and services in the US and across the globe. The company ranks 2nd on our list of the best finance stocks that pay dividends.
In May, RBC Capital’s Mark Dwelle raised his price target on Prudential Financial, Inc. (NYSE: PRU) shares from $92 to $108. Dwelle also held on to his Sector Perform rating on the stock.
In the first quarter of 2021, Prudential Financial, Inc. (NYSE: PRU) had an EPS of $4.11, beating estimates by $1.36. The company’s revenue was $14.21 billion, up 6.61% year over year but missing estimates by $232.54 million. Prudential Financial, Inc. (NYSE: PRU) has also gained 22.51% in the past 6 months and 30.24% year to date.
By the end of the first quarter of 2021, 37 hedge funds out of the 866 tracked by Insider Monkey held stakes in Prudential Financial, Inc. (NYSE: PRU) worth roughly $634 million. This is compared to 36 hedge funds in the previous quarter with a total stake value of approximately $532 million.
1. The Progressive Corporation (NYSE: PGR)
Number of Hedge Fund Holders: 45
Dividend Yield: 5.1%
The Progressive Corporation (NYSE: PGR) is an insurance holding company and ranks 1st on our list of the best finance stocks that pay dividends. The company offers personal and commercial auto and personal residential property and other related insurance products in the US.
BofA just this July added The Progressive Corporation (NYSE: PGR) to its US 1 List, while MKM Partners has a Buy rating on the stock.
In the second quarter of 2021, The Progressive Corporation (NYSE: PGR) had an EPS of $0.71, missing estimates by $0.34. The company’s revenue was $11.48 billion, up 13.22% year over year and also beating estimates by $150.80 million. The Progressive Corporation (NYSE: PGR) has also gained 3.28% in the past 6 months and 8.51% in the past year.
By the end of the first quarter of 2021, 45 hedge funds out of the 866 tracked by Insider Monkey held stakes in The Progressive Corporation (NYSE: PGR) worth roughly $1.21 billion. This is compared to 48 hedge funds in the previous quarter with a total stake value of approximately $1.74 billion.
Wedgewood Partners, an investment management firm, mentioned The Progressive Corporation (NYSE: PGR) in its second-quarter 2021 investor letter. Here’s what they said:
“Progressive continues to report double-digit growth in policies in force (PIF), having added nearly 750,000 personal automobile and commercial PIFs in the first quarter of 2021, compared to the Company’s closest competitor, GEICO (a subsidiary of Berkshire Hathaway), which added just 124,000 PIFs. However, Progressive’s loss ratio has been elevated over the past few months due to a large, unseasonal ice storm that affected the southwestern U.S. We expect the financial effects of this to be short-lived and that the Company’s core earnings power should continue compounding in-line with its growth in PIFs. Traditional financial businesses are historically and relatively out of favor, if only evidenced by their slim weightings in major U.S. benchmarks, but there are pockets of exceptional growth businesses, such as Progressive, where we are happy to be contrarians.”
You can also take a look at 10 Best Finance Stocks To Buy Now and 10 Best Consumer Finance Stocks To Buy Now.
