In this article, we will be looking at the 5 best financial stocks that pay dividends. If you want to see our detailed analysis of financial stocks, go directly to the 10 Best Financial Stocks that Pay Dividends.
5. 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 that operates through its Personal Lines, Commercial Lines, and Property segments. The company offers a range of insurance and related services in the US and ranks 5th on our list of the best financial stocks that pay dividends.
MKM Partners holds a Buy rating and a $125 price target on The Progressive Corporation (NYSE: PGR) while Raymond James has an Outperform rating on the shares.
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 8.35% in the past 6 months and 9.68% 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.”
4. New York Community Bancorp, Inc. (NYSE: NYCB)
Number of Hedge Fund Holders: 25
Dividend Yield: 6.18%
New York Community Bancorp, Inc. (NYSE: NYCB), headquartered in New York City, is a commercial bank with about 225 branches. It operates across the US as one of the largest banks in the country and ranks 4th on our list of the best financial stocks that pay dividends.
Meng Jiao, an analyst at Deutsche Bank, raised the price target on New York Community Bancorp, Inc. (NYSE: NYCB) shares this May from $11.50 to $15. Jiao also keeps a Hold rating on the company.
In the first quarter of 2021, New York Community Bancorp, Inc. (NYSE: NYCB) had an EPS of $0.29, beating estimates by $0.02. The company’s revenue was $332.55 million, up 27.23% year over year and beating estimates by $8.33 million. New York Community Bancorp, Inc. (NYSE: NYCB) has also gained 2.71% in the past 6 months and 4.76% year to date.
By the end of the first quarter of 2021, 25 hedge funds out of the 866 tracked by Insider Monkey held stakes in New York Community Bancorp, Inc. (NYSE: NYCB) worth roughly $329 million. This is compared to 25 hedge funds in the previous quarter with a total stake value of approximately $244 million.
3. Artisan Partners Asset Management Inc. (NYSE: APAM)
Number of Hedge Fund Holders: 21
Dividend Yield: 6.97%
Artisan Partners Asset Management Inc. (NYSE: APAM) is a capital market company based in Wisconsin. The company offers a range of investment management services to mutual funds and pooled investment vehicles among others and ranks 3rd on our list of the best financial stocks that pay dividends.
Keefe Bruyette’s Robert Lee holds an Outperform rating on Artisan Partners Asset Management Inc. (NYSE: APAM) shares alongside a $59 price target versus the previous $55 price target.
In the first quarter of 2021, Artisan Partners Asset Management Inc. (NYSE: APAM) had an EPS of $1.13, beating estimates by $0.02. The company’s revenue was $290.68 million, up 43.31% year over year and beating estimates by $4.18 million. Artisan Partners Asset Management Inc. (NYSE: APAM) has also gained 41.96% in the past year.
By the end of the first quarter of 2021, 21 hedge funds out of the 866 tracked by Insider Monkey held stakes in Artisan Partners Asset Management Inc. (NYSE: APAM) worth roughly $279 million. This is compared to 21 hedge funds in the previous quarter with a total stake value of approximately $317 million.
2. Barings BDC, Inc. (NYSE: BBDC)
Number of Hedge Fund Holders: 14
Dividend Yield: 7.60%
Barings BDC, Inc. (NYSE: BBDC), another capital market company, ranks 2nd on our list of the best financial stocks that pay dividends. The company is a closed-end management investment corporation.
This June, Derek Hewett from BofA upgraded Barings BDC, Inc. (NYSE: BBDC) from Underperform to Buy, keeping an $11.95 price target on the company’s shares as well.
In the first quarter of 2021, Barings BDC, Inc. (NYSE: BBDC) had an NII of $0.22, beating estimates by $0.02. The company’s TII was $30.59 million, up 63.78% year over year and beating estimates by $3.72 million. Barings BDC, Inc. (NYSE: BBDC) has also gained 17.13% in the past 6 months and 15.08% year to date.
By the end of the first quarter of 2021, 14 hedge funds out of the 866 tracked by Insider Monkey held stakes in Barings BDC, Inc. (NYSE: BBDC) worth roughly $60.2 million. This is compared to 15 hedge funds in the previous quarter with a total stake value of approximately $69.2 million.
1. Ares Capital Corporation (NASDAQ: ARCC)
Number of Hedge Fund Holders: 15
Dividend Yield: 7.95%
Ares Capital Corporation (NASDAQ: ARCC), a business development company, ranks 1st on our list of the best financial stocks that pay dividends. The company focuses on acquisition, recapitalization, mezzanine debt, and related areas.
JPMorgan’s analyst Richard Shane holds a Neutral rating on Ares Capital Corporation (NASDAQ: ARCC) shares and has raised his price target on the stock this March from $18 to $19.
In the first quarter of 2021, Ares Capital Corporation (NASDAQ: ARCC) had an NII of $0.33, missing estimates by $0.09. The company’s TII was $390 million, up 5.69% year over year and beating estimates by $4.15 million. Ares Capital Corporation (NASDAQ: ARCC) has also gained 15.04% in the past 6 months and 21.87% year to date.
By the end of the first quarter of 2021, 15 hedge funds out of the 866 tracked by Insider Monkey held stakes in Ares Capital Corporation (NASDAQ: ARCC) worth roughly $84 million. This is compared to 15 hedge funds in the previous quarter with a total stake value of approximately $102 million.
You can also take a look at 10 Best Finance Stocks To Buy Now and 10 Best Consumer Finance Stocks To Buy Now.
