10 Best Bank Dividend Stocks

Fatima Farooq
10 min read

In This Article:

In this article, we will be looking at the 10 best bank dividend stocks. If you want to skip our detailed analysis of the banking and financials sector, you can go directly to the 5 Best Bank Dividend Stocks.

According to the Wall Street Journal, as of May 2021 investors have begun going on a banking stock investment spree, with about $32 billion dollars being invested in broad financial stocks by as early as May. As vaccination rates begin to gain headway across the world, with about 3.88 billion vaccine doses having been administered as of July 26th, 2021, the economic recovery and reopening seem right around the corner. As such, investors are picking just this moment to jump right back into bank stocks like Morgan Stanley (NYSE: MS), Bank of America Corporation (NYSE: BAC), JPMorgan Chase & Co. (NYSE: JPM), and The Goldman Sachs Group, Inc. (NYSE: GS).

According to Reuters, this June, investors considered consumer confidence data to restore their faith in bank stocks, which were responsible for the S&P 500 index rising to a new record high on June 29th. The S&P 500 index was able to gain about 020% while the Dow Jones Industrial Average was able to rise by about 0.48%, with the former being uplifted and supported by some of the biggest banks in the US. Additionally, just this July bank stocks again helped the FTSE rebound after its plunge in light of another surge in the rise of coronavirus cases and resurging concerns surrounding yet another economic crisis. Reuters has stated that the FTSE 100 was up 0.5% on July 20th with bank stocks being among the leaders supporting this gain and jumping by about 1.1%.

Additionally, with the S&P 500 having outperformed consensus estimates in the first quarter of 2021, for instance through its earnings growth for that quarter standing at 52% against the estimates of 24% according to a Russell Investments report, investors are steadily continuing to become more bullish on banking and finance stocks and thus more prone to pour money into the sector. With bank stocks thus being among some of the top contributors to both the S&P 500's gains and to the FTSE's advances, alongside the fact that the global economy can be safely considered to be on a path to recovery, opinions surrounding investing in banking and finance are becoming more optimistic. As such, we have compiled a list of the best bank dividend stocks, to point out some of the more popular stocks in the sector to invest in.

Investing is becoming difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and May 29th 2021 our monthly newsletter’s stock picks returned 206.8%, vs. 91% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

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