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 performances are shown below:
| HIGHER DIVIDEND YIELDS | Dividend Yield | YTD Return | 52-week Return | |
| Annaly Capital Management Inc. | NLY | 11.1% | 0.50% | 32.4% |
| HCP Inc. | HCP | 5.1% | 2.18% | 26.3% |
| The Blackstone Group | BX | 4.3% | 20.45% | 65.0% |
| M&T Bank Corp. | MTB | 3.2% | 1.07% | 10.9% |
| General Growth Properties | GGP | 3.0% | 3.45% | 53.6% |
| Vornado Realty Trust | VNO | 2.8% | 15.17% | 32.2% |
| AVALONBAY Communities | AVB | 2.8% | 11.91% | 39.6% |
| Public Storage | PSA | 2.8% | 12.95% | 32.1% |
| Marsh & McLennan Companies | MMC | 2.8% | 11.17% | 45.0% |
| The Allstate Corporation | ALL | 2.6% | -0.79% | 8.2% |
| BB & T Corp. | BBT | 2.4% | 0.46% | -11.8% |
| Northern Trust Corporation | NTRS | 2.3% | -11.94% | -2.0% |
| Boston Properties Inc. | BXP | 1.9% | 20.88% | 44.0% |
| Equity Residential | EQR | 1.9% | 14.41% | 42.8% |
| Invesco Ltd. | IVZ | 1.9% | 1.9% | 34.1% |
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| AVERAGE | 6.9% | 30.2% |
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