Investing in Mid-Cap Financials for Strong Performance
Insider Monkey submits:
In a previous article, we showed that most mega-cap financials didn’t have high dividend yields attractive enough for dividend investors. Although high dividend financial stocks have performed better than low dividend financial stocks in the last 52-week period, dividend lovers may not find these large-cap high dividend stocks appealing.
We believe there are better dividend opportunities within financial sector. Mid-cap financial stocks have higher dividend yields than large-cap financial stocks. We prefer high dividend stocks since they generally perform better and increase their dividend payments over 5-10 years. We also believe investors should consider picking higher dividend stocks when they seek protection against inflation in the current monetary environment.
We compiled a list of 30 Financial Stocks (the sector classifications are sourced from Finviz) that have a market cap between $10B and $20B and ranked them based on their 12-month dividend yields. The top and bottom halves and their performancesComplete Story »