In this article, we will be looking at 5 finance stocks that pay dividends. To see our detailed analysis of finance stocks and dividend investing, you can go directly to the 10 Finance Stocks that Pay Dividends.
5. Unum Group (NYSE: UNM)
Number of Hedge Fund Holders: 33
Dividend Yield: 4.2%
Unum Group (NYSE: UNM) is an insurance company that is also part of the Fortune 500 and ranks 5th on our list of finance stocks that pay dividends. The company is based in Chattanooga, Tennessee, and was created from the merger of Unum Corporation and The Provident Companies in 1999.
Jimmy Bhullar, an analyst at JPMorgan, raised the price target on shares of Unum Group (NYSE: UNM) this April, bring the target up to $29 from the previous $24. The analyst also holds a Neutral rating on Unum Group (NYSE: UNM) shares.
In the second quarter of 2021, Unum Group (NYSE: UNM) had an EPS of $1.39, beating estimates by $0.27. The company’s revenue was $2.99 billion, up 0.16% year over year and also beating estimates by $32.02 million. Unum Group (NYSE: UNM) has also gained 6.56% in the past 6 months and 15.44% 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. Citizens Financial Group, Inc. (NYSE: CFG)
Number of Hedge Fund Holders: 41
Dividend Yield: 3.7%
Citizens Financial Group, Inc. (NYSE: CFG), a US-based bank founded in 1828, ranks 4th on our list of finance stocks that pay dividends. The bank operates mainly in Connecticut, Delaware, Maine, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, and Vermont.
This July, Jill Shea from Citigroup took over coverage of shares of Citizens Financial Group, Inc. (NYSE: CFG) with a Neutral Rating, Shea has also commented that there is reason to be positive on the performance and improvement in returns for regional banks.
In the second quarter of 2021, Citizens Financial Group, Inc. (NYSE: CFG) had an EPS of $1.46, beating estimates by $0.32. The company’s revenue was $1.61 billion, but missing estimates by $20.36 million. Citizens Financial Group, Inc. (NYSE: CFG) has also gained 6.55% in the past 6 months and 21.42% year to date.
By the end of the first quarter of 2021, 41 hedge funds out of the 866 tracked by Insider Monkey held stakes in Citizens Financial Group, Inc. (NYSE: CFG) worth roughly $579 million. This is compared to 38 hedge funds in the previous quarter with a total stake value of approximately $453 million.
3. OneMain Holdings, Inc. (NYSE: OMF)
Number of Hedge Fund Holders: 43
Dividend Yield: 3.1%
OneMain Holdings, Inc. (NYSE: OMF), a US-based financial services holding company, operates throughout the country with its subsidiaries such as OneMain Finance Corporation and Ask Benjamin Inc. The company ranks 3rd on our list of finance stocks that pay dividends.
Arren Cyganovich, an analyst at Citigroup, raised the price target on shares of OneMain Holdings, Inc. (NYSE: OMF) from $64 to $71 just this July. The analyst also reiterating a Buy rating on the stock at the same time.
In the second quarter of 2021, OneMain Holdings, Inc. (NYSE: OMF) had an EPS of $2.66, beating estimates by $0.46. The company’s revenue was $989 million, up 3.67% year over year and also beating estimates by $23.72 million. OneMain Holdings, Inc. (NYSE: OMF) has also gained 4.53% in the past 6 months and 24.15% year to date.
By the end of the first quarter of 2021, 43 hedge funds out of the 866 tracked by Insider Monkey held stakes in OneMain Holdings, Inc. (NYSE: OMF) worth roughly $886 million. This is compared to 30 hedge funds in the previous quarter with a total stake value of approximately $654 million.
Miller Value Partners, an investment management firm, mentioned OneMain Holdings, Inc. (NYSE: OMF) in its fourth-quarter 2020 investor letter. Here’s what they said:
“OneMain Holdings (OMF) was the top contributor over the quarter, advancing 56.0% after reporting Q3 Earnings Per Share (EPS) of $2.19, well above consensus of $1.26 and the quarterly dividend, which was increased 36% to $0.45/share (3.5% annualized yield and 11.5% Trailing Twelve Month (TTM) yield). Net interest income of $836M beat estimates of $778M, implying a 24.3% asset yield and 18.7% net interest margin. Origination volumes increased 41% sequentially to $2.9Bn on continued strength in digital while end-of-period net receivables were flat at $17.8Bn. Credit quality remains excellent with net charge-offs of 5.2%, the lowest level since 3Q 2015. Management guided to year-end receivables of $18.1Bn, net charge-offs of 5.6% (from 5.8%-6.0%), and net leverage of 4.3x-4.5x.”
2. Morgan Stanley (NYSE: MS)
Number of Hedge Fund Holders: 79
Dividend Yield: 3%
Morgan Stanley (NYSE: MS) is an investment banking company that operates across the globe and ranks 2nd on our list of finance stocks that pay dividends. The company is headquartered in New York and was founded in 1931.
Citi analyst Keith Horowitz just this July raised the price target on shares of Morgan Stanley (NYSE: MS) to $97. This is compared to the previous price target of $88. The analyst also holds a Neutral rating on Morgan Stanley (NYSE: MS) shares.
In the second quarter of 2021, Morgan Stanley (NYSE: MS) had an EPS of $1.89, beating estimates by $0.23. The company’s revenue was $14.76 billion, up 10.03% year over year and also beating estimates by $763.58 million. Morgan Stanley (NYSE: MS) has also gained 31.79% in the past 6 months and 43.17% year to date.
By the end of the first quarter of 2021, 79 hedge funds out of the 866 tracked by Insider Monkey held stakes in Morgan Stanley (NYSE: MS) worth roughly $5.29 billion. This is compared to 66 billion hedge funds in the previous quarter with a total stake value of approximately $5.67 billion.
1. Citigroup Inc. (NYSE: C)
Number of Hedge Fund Holders: 90
Dividend Yield: 3%
Citigroup Inc. (NYSE: C) is among the most renowned US multinational investment banks and is based in New York. The company ranks 1st on our list of finance stocks that pay dividends and offers a range of financial services and investment management services to clients across the globe.
This July, Citigroup Inc. (NYSE: C) shares received an Outperform rating from David Konrad, an analyst at Keefe Bruyette, who assumed coverage of the stock. Alongside the positive rating, the stock also received an $85 price target.
In the second quarter of 2021, Citigroup Inc. (NYSE: C) had an EPS of $2.84, beating estimates by $0.95. The company’s revenue was $17.47 billion, also beating estimates by $273.99 million. Citigroup Inc. (NYSE: C) has also gained 9.49% in the past 6 months and 15.88% year to date.
By the end of the first quarter of 2021, 90 hedge funds out of the 866 tracked by Insider Monkey held stakes in Citigroup Inc. (NYSE: C) worth roughly $6.94 billion. This is compared to 95 hedge funds in the previous quarter with a total stake value of approximately $7.12 billion.
You can also take a look at 10 Best Finance Stocks To Buy Now and 10 Best Consumer Finance Stocks To Buy Now.
