Top Five Financial Sector Dividend Stocks

Historically, the financial sector has been one of the biggest dividend payers in the entire market. But the credit crisis really crushed the financial industry, and dividends were slashed almost everywhere. Now, financials are slowly beginning to raise their dividend payouts once again. As the sector regains its footing, I fully expect to see more companies raising their dividend in the coming quarters. Some companies are in a much better financial position to give back to the shareholders than others. Those who were hurt the most during the financial crisis, like Bank of America and Citigroup, are struggling to find the finds to pay a dividend of any kind. On the other hand, there are some financial names that got out of the credit crisis less damaged. Let's take a look at the top five financial sector dividend stocks in the market today. Top Five Financial Sector Dividend Stocks 1. People's United Financial (Nasdaq:PBCT): People's United only has a market capitalization of $4.48 billion, so it is the smallest of the names on this list. The company operates in the northeastern section of the United States, and it has proven able to navigate through tough times. People's United Financial is currently yielding an impressive 4.8 percent. The company has raised its dividend for 13 straight years, which is quite an amazing feat considering how difficult the environment has been for regional banks. 2. M&T Bank Corp. (NYSE:MTB): M&T Bank Corporation is headquartered in Buffalo, New York. The company has over 700 offices and more than 12,000 employees. M&T Bank has emerged as an industry leader after the credit crisis. During fiscal year 2010, M&T Bank had a profit margin of 24.71percent, which is much better than the average regional bank. Management has done a good job focusing the bank on its core businesses. M&T Bank is currently yielding 3.2 percent. 3. CME Group (NYSE:CME): CME Group is a far different type of financial company, but its growth has been extremely impressive. CME Group operates the CME, CBOT, NYMEX, and COMEX regulatory exchanges worldwide. This is a company that has been piling up impressive free cash flow numbers in the past few years. While the current dividend yield for CME is just 1.81 percent, the payout ratio here is just 32 percent, which makes me think there is plenty of room for dividend growth in the coming years. 4. JP Morgan Chase (NYSE:JPM): JP Morgan Chase is the only money center bank on this top five list. They certainly didn't come through the credit crisis unscathed, but compared with their peers they held up quite nicely. Jamie Dimon has proven to be an innovative leader at the helm for JP Morgan Chase. The stock now yields 2.3 percent, and I believe their large cash position will allow them to raise this dividend in the coming quarters. 5. BB&T Corp. (NYSE:BBT): BB&T Corporation is a Mid-Atlantic regional bank. The company operates nearly 2,000 banking offices and their market capitalization is $18.55 billion. BB&T's conservative nature proved to be a large asset during the credit crisis of 2008 and 2009. BB&T has been hoarding cash over the last few quarters, which is a good sign for the future of their dividend. The stock is currently yielding 2.4 percent.... Read more