These 3 Financial Stocks with Over 4% Yield are Outperforming the S&P 500 YTD
StockNews
Published Sep 24, 2021 02:19PM ET
Updated Sep 24, 2021 03:31PM ET
These 3 Financial Stocks with Over 4% Yield are Outperforming the S&P 500 YTD
Despite the unabating low-interest-rate environment, the financial sector has rebounded this year on a significant increase in financial transactions and capital market activities. This, coupled with the odds the Fed will raise interest rates in the near term, should keep driving the industry’s growth. So, we think it could be wise to add high-yield financial stocks Canadian Imperial (CM), Prudential Financial (NYSE:PRU), and Huntington Bancshares (HBAN) to one’s watch list now because they have outperformed the S&P 500 so far this year. Read on. Federal Reserve Chair Jerome Powell said on September 22 that benchmark interest rates will be held near zero, and the central bank will continue the current pace of asset purchases. Nevertheless, the financial sector has seen a continuing recovery due to increasing financial transactions and capital market activities.
Adding to the positives, the Federal Reserve said that it could soon slow its large-scale purchases of government-backed bonds and indicated it might raise interest rates in 2022, which should help financial companies increase their interest income. Moreover, according to a Globe Newswire report, the global financial services market is expected to grow at a 9.9% CAGR to hit $22.5 trillion this year.
Therefore, Canadian Imperial Bank of Commerce (CM), Prudential (NYSE:PUK) Financial, Inc. (PRU), and Huntington Bancshares Incorporated (NASDAQ:HBAN) could be solid bets due to their market dominance and more than 4% dividend yield. Furthermore, these stocks have outperformed the S&P 500's 18.5% gains year-to-date.
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