Big Financial Companies That Pay Dependable High-Yield Dividends Can Survive Tariffs

President Trump has set the stage for the beginning of the end of the world, taking advantage of unlimited largess from the United States, a practice that began after World War II and has been in place ever since. Foreign countries and companies have been allowed to sell their products in the United States at virtually no cost. In contrast, American companies face tariffs and VAT taxes on products sold in foreign countries.

While that playing field is being leveled, many foreign companies and domestic giants are pledging billions of dollars in capital to be invested in and used to expand U.S. manufacturing. That is a process that will take time, but the reality is that manufacturing that returns to the United States will provide jobs for many sectors. While the beginning of a new world presence will likely face a difficult start, it is high time for the government to be downsized. At the same time, American jobs and opportunities are expanded and upsized.

One advantage for domestic companies with a smaller overseas presence is that they will continue to operate virtually free from many of the restrictions imposed on companies that export and have large foreign sales. One sector that is particularly attractive at present is the financial sector, which encompasses not only banks but also insurance companies. Trading at multiples that are half the level of many large caps with extensive overseas exposure, they also pay reliable and, in some cases, oversized dividends. While banks are highly regulated, there is a hope among many that some of the more onerous regulations will be lessened.

We screened our 24/7 Wall St. financial dividend stocks research database, looking for companies that are Buy-rated across Wall Street, pay big and dependable dividends, and trade at a reasonable multiple. Five top companies have come into view, and all make sense now, especially after a market sell-off that has made everything appear more affordable.

Why do we cover financial services dividend stocks?

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

Bank of America

Bank of America Corp. (NYSE: BAC) is an American multinational investment bank and financial services company. It is a prominent presence in the United States, operating as a bank and financial holding company. The company posted solid fourth-quarter results and is looking to increase its share repurchase.

Its segments include:

• Consumer Banking
• Global Wealth & Investment Management (GWIM)
• Global Banking
• Global Markets

The Consumer Banking segment offers a range of credit, banking, and investment products and services to consumers and small businesses.

The GWIM includes two businesses:

• Merrill Wealth Management, which provides tailored solutions to meet clients’ needs through a complete set of investment management, brokerage, banking and retirement products
• Bank of America Private Bank, which provides comprehensive wealth management solutions

The Global Banking segment offers a range of lending-related products and services, including integrated working capital management and treasury solutions, as well as underwriting and advisory services.

The Global Markets segment offers sales, trading, and research services to institutional clients across fixed income, credit, currency, commodity, and equity markets.

Citigroup has a Buy rating, with a target price objective of $52 for the shares.

PNC Financial Services

The PNC Financial Services Group Inc. (NYSE: PNC) is an American bank holding company and financial services corporation based in Pittsburgh, Pennsylvania. This bank has a vast client base and is among the top 10 largest U.S. banks by assets. Importantly, Jim Cramer feels the bank is a favorite among Wall Street analysts.

PNC Financial Services operates through three segments:

• Retail Banking
• Corporate & Institutional Banking
• Asset Management Group

The company’s Retail Banking segment offers:

• Checking, savings, and money market accounts, as well as time deposits
• Residential mortgages, home equity loans, and lines of credit
• Auto loans, credit cards; education loans, and personal and small business loans and lines of credit
• Brokerage, insurance, and investment and cash management services

This segment serves consumer and small business customers through branches, digital channels, ATMs, and phone-based customer contact centers.

The Corporate & Institutional Banking segment provides:

• Secured and unsecured loans, letters of credit, and equipment leases
• Cash and investment management services
• Receivables and disbursement management services
• Funds transfer services
• International payment services
• Access to online/mobile information management and reporting
• Securities underwriting, loan syndications, customer-related trading
• Mergers and acquisitions and equity capital markets advisory-related services
• Commercial loan servicing and technology solutions

It serves mid-sized and large corporations as well as government and not-for-profit entities.

PNC Financial Service Groups Asset Management Group segment offers:

• Investment and retirement planning, customized investment management, credit and cash management solutions, and trust management and administration services for high-net-worth and Ultra-high net worth individuals and their families
• Multi-generational family planning services for ultra-high-net-worth individuals and their families

It provides outsourced chief investment officers, custody, private real estate, cash, and fixed-income solutions for clients, as well as retirement plan fiduciary investment services for institutional clients.

Wells Fargo has assigned an Overweight rating, with a target price of $230.

Prudential Financial

Prudential Financial Inc. (NYSE: PRU) provides insurance, investment management, and other financial products and services in the United States and internationally. This insurance and investment giant is a very safe idea for conservative investors.

It operates through five segments:

• PGIM
• Retirement Strategies
• Group Insurance
• Individual Life
• International Businesses segments

The PGIM segment offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit, and other alternatives, as well as multi-asset class strategies, to institutional and retail clients, as well as its general account.

The Retirement Strategies segment provides a range of retirement investment and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors. It develops and distributes individual variable and fixed annuity products.

The Group Insurance segment offers:

• Various group life plans
• Long-term and short-term group disability
• Group corporate-, bank-, and trust-owned life insurance in the United States primarily for institutional clients for use in connection with employee and membership benefits plans
• Accidental death and dismemberment and other supplemental health solutions
• Plan administration services in connection with its insurance coverage

The Individual Life segment develops and distributes variable life, universal life, and term life insurance products.

The International Businesses segment develops and distributes life insurance, retirement products, investment products, and specialized accident and health products, as well as advisory services. The company provides its products and services to individual and institutional customers through its proprietary and third-party distribution networks.

Jefferies has a Buy rating with a $152 target.

United Bancshares

This bank holding company with dual headquarters in Charleston, West Virginia, and Fairfax, Virginia. This mid-cap financial company also offers solid total return potential, now in a sector that has performed well over the past year, and it is one of the Dividend Kings. United Bancshares Inc. (NASDAQ: UBSI) primarily provides commercial and retail banking products and services in the United States.

It operates through two segments:

• Community Banking
• Mortgage Banking

The company accepts:

• Checking, savings, and time and money market accounts
• Individual retirement accounts and demand deposits
• Statement and special savings
• NOW accounts.

Its loan products include:

• Commercial loans and leases to small to mid-size industrial and commercial companies
• Construction and real estate loans, such as commercial and residential mortgages
• Loans secured by owner-occupied real estate
• Personal, student, and credit card receivables
• Personal, commercial, and floor plan loans
• Home equity loans.

In addition, the company offers credit cards, safe deposit boxes, wire transfers, and other banking products and services, as well as investment and security services. It also provides services to correspondent banks, including buying and selling federal funds, automated teller machine services, and internet and telephone banking services.

Furthermore, it provides community banking services, including asset management, real property title insurance, financial planning, mortgage banking, brokerage services, investment management, and retirement planning.

Raymond James has a Buy rating with a $38 target price.

Three Stocks Trading Under $10 That Deliver Massive Ultra-High-Yield Dividends

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