stockmarketwalk The best bank dividend stocks are those that offer consistent and predictable payouts to shareholders. This article lists 5 bank stocks with high dividend yields that can be great option to consider.
Sector overview
The banking sector plays a key role in economy and financial stability. In general, the sector’s performance depends on economic conditions. When the demand for loan is high, like the economic activity and the unemployment rate is low, the banking sector engages in great conditions to run the business effectively. However, the sector may underperform during difficult times in the economy.
After the pandemic, the US economy recovered quickly, while there was increased demand for business loans and mortgages due to the record low interest rate, which formed a basis for the growth in recent years.
As an economical consequence of the military conflict in Ukraine, the Federal Reserve started to hike the interest rate aggressively. This might potentially deliver outsized earnings growth for bank stocks over the next few years. However, a slowdown in loan issuance might have weight on bank stocks.
From what the statistics say until now, is that despite the circumstances, the figures of U.S. economy remained stable. The economists expect slight economic growth in the second half of 2022.
Investing in the U.S. economy is still promising due to its stable outlook. The largest threat during recession is a potential wave of loan defaults due to hiking cost of loans and rising unemployment rate. But, the banking sector is one of the most important pillars of the economy. Moreover, this sector belongs to the most regulated industries in the world.
The crises of recent years have created stable fundaments. Likewise, according to a research,
The fundamentals of the banks are actually strengthening
Over the recent months, the bank stocks have generally fallen, which provides a promising opportunity for dividend return. In the following, it has compiled a list of compelling choices using Yahoo Finance Stock Screener for those who prefer a long-term approach to investing.
| Ticker | Company | Market cap | Sector | Industry |
|---|---|---|---|---|
| NYSE USB | U.S. Bancorp | US$70,9 billion | Financial Services | Bank |
| NYSE C | Citigroup Inc. | US$100,5 billion | Financial Services | Bank |
| NYSE TFC | Truist Financial Corporation | US$63,8 billion | Financial Services | Bank |
| NYSE KEY | KeyCorp | US$16,9 billion | Financial Services | Bank |
| NYSE CFG | Citizens Financial Group, Inc. | US$18,4 billion | Financial Services | Bank |
Source: Yahoo Finance database
Best bank dividend stocks from U.S.
5. U.S. Bancorp (Ticker NYSE USB) – U.S.
Market capitalization: US$70,9 billion, forward annual dividend yield: 3,86%, P/E 10,98
U.S. Bancorp, a financial service holding company, provides various financial services including lending and depository services, mortgage, foreign exchange, cash management, trust and investment management. It has 3000+ branches, 4000+ ATMs. Furthermore, it is the parent company of US Bank National Association and listed among the largest banks in the U.S. Year of foundation:1863. Headquarter: Minneapolis, Minnesota.
There are typically 4 dividends per year in every 4 quarters. 5 Year Average Dividend Yield: 3,02%
4. Citigroup Inc. (Ticker NYSE C) – U.S.
Market capitalization: US$100,5 billion, forward annual dividend yield: 3,93%, P/E 6,51
Citigroup Inc., a financial service holding company. In short, the company provides various financial products and services to consumers, corporations, governments, and institutions with a wide range of financial products and services, including consumer banking and credit, securities brokerage, trade and securities services, corporate and investment banking, and wealth management. Citibank has more than 2000+ branches worldwide. The company engages in North America, Latin America, Europe, Asia, the Middle East, and Africa. Moreover, it is one of the Big Four banking institutions of U.S. It was founded in 1812 and is headquartered in New York.
There are typically 4 dividends per year in every 4 quarters. 5 Year Average Dividend Yield: 2,79%
3. Truist Financial Corporation (Ticker NYSE TFC) – U.S
Market capitalization: US$63,8 billion, forward annual dividend yield: 4,01%, P/E 10,89
Truist Financial Corporation is an American bank holding company, which provides banking and trust services in the Southeastern and Mid-Atlantic United States. Furthermore, the company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings. In 2019, it was formed following the merger of Branch Banking and Trust Company and SunTrust Banks. Additionally, it operates 2500+ branches, it belongs to the top 10 largest bank in the U.S. based on total assets. It was founded in 1872 and is based in Charlotte, North Carolina.
There are typically 4 dividends per year in every 4 quarters. 5 Year Average Dividend Yield: 3,22%
2. KeyCorp (Ticker NYSE KEY) – U.S.
Market capitalization: US$16,9 billion, forward annual dividend yield: 4,32%, P/E 7,36
KeyCorp operates as a bank holding company, it engages in the provision of financial services. It operates through two segments, Consumer Bank and Commercial Bank. The Consumer Bank segment offers wide range of products for customer like deposit and investment products, personal finance, lending, mortgage and home equity, treasury services, and business advisory services. Besides, the Commercial Bank segment offers services in industry sectors. Moreover, KeyBank is 24th on the list of largest banks in the United States, 449th on the 2022 Fortune 500 list. It has a network of more than 1000 branches and 1,500+ ATMs in 15 states. It was founded in 1849 and is headquartered in Cleveland, Ohio.
There are typically 4 dividends per year in every 4 quarters. 5 Year Average Dividend Yield: 3,61%
1. Citizens Financial Group, Inc. (Ticker NYSE CFG) – U.S.
Market capitalization: US$18,4 billion, forward annual dividend yield: 4,52%, P/E 9,46
Citizens Financial Group, Inc. engages in the provision of commercial banking services. The bank provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions in the United States. Another key point, Citizens was a wholly owned subsidiary of The Royal Bank of Scotland Group (NatWest Group) between 1988 and its 2014 initial public offering. Furthermore, it operates 1,200+ branches in 14 states and listed among top 20 banks of U.S. based on total assets. The company was founded in 1828 and is headquartered in Providence, Rhode Island.
There are typically 4 dividends per year in every 4 quarters. 5 Year Average Dividend Yield: 3,47%
