Insurance Australia Group, QBE Insurance Group, and ASX are financial services stocks that generally perform in-line with the economy. Firms in this sector offer services ranging from investment banking to consumer finance. Downturns can hit financial services companies hard as net interest margins shrink and credit losses grow. However, in good times, they report steady profits and many pay attractive dividends. Today I will share with you my list of high-dividend financial stocks you should consider for your portfolio.
Insurance Australia Group Limited (ASX:IAG)
Insurance Australia Group Limited underwrites general insurance products. Started in 1925, and run by CEO Peter Harmer, the company provides employment to 13,650 people and with the company’s market capitalisation at AUD $14.87B, we can put it in the large-cap stocks category.
IAG has a large dividend yield of 6.29% and pays out 84.54% of its profit as dividends . While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from $0.295 to $0.4.
QBE Insurance Group Limited (ASX:QBE)
QBE Insurance Group Limited underwrites general insurance and reinsurance risks worldwide. Formed in 1886, and headed by CEO John Neal, the company size now stands at 14,226 people and with the market cap of AUD $13.55B, it falls under the large-cap stocks category.
QBE has a substantial dividend yield of 7.07% and pays 59.73% of it’s earnings as dividends , with analysts expecting the payout ratio in three years to be 62.76%. The company’s yield puts it among good company – the top 25% of the market.
ASX Limited (ASX:ASX)
ASX Limited, a multi-asset class and integrated exchange group, provides listings, trading, clearing, settlement, registry, and information and technical services in Australia and internationally. The company provides employment to 554 people and with the stock’s market cap sitting at AUD $10.10B, it comes under the large-cap stocks category.
ASX has a nice dividend yield of 3.86% and the company currently pays out 89.91% of its profits as dividends . Despite some volatility in the yield, DPS has risen in the last 10 years from $1.83 to $2.018.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.
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