The Top Financial Stocks
Top Financial stocks for December 2024
Western Alliance Bancorp (WAL) American Express Co (AXP)
analysis by Chaster JohnsonWestern Alliance Bancorp (WAL)
analysis by Chaster JohnsonJPMorgan Chase & Co (JPM)
analysis by Chaster JohnsonAmerican Express Co (AXP) Cincinnati Financial Corp. (CINF) JPMorgan Chase & Co (JPM)
analysis by Dividend Power BlogToronto Dominion Bank (TD)
analysis by Dividend Power BlogElevance Health, Inc. (ELV)
analysis by Dividend Power BlogFranklin Resources, Inc. (BEN)
analysis by Dividend Power BlogJPMorgan Chase & Co (JPM) Goldman Sachs Group, Inc. (GS) T Rowe Price Group Inc (TROW)
analysis by Dividend Power BlogAlexandria Real Estate Equities Inc. (ARE)
analysis by Dividend Power BlogAlly Financial Inc (ALLY)
analysis by Dividend Power BlogKilroy Realty Corp. (KRC)
analysis by Dividend Power BlogVictory Capital Holdings Inc (VCTR) Mastercard Incorporated (MA) Intercontinental Exchange Inc (ICE) Heartland Group Holdings Ltd (HGH)
Why you can trust our List
Image by Gerd Altmann from Pixabay
Expertise provided by Kevin Matthews from buildingbread.com
What is a Financial Stock?
A financial stock provides capital services to its customers. These could be people, businesses, organizations, or even governments. Capital services can be very broad but some key activities are the cornerstones of financial stocks.
Bank Deposits and Loans
Bank deposits are a key service provided by banks. This service allows depositors to safely store their capital and also get insurance on its safety by getting guarantees from the government on their deposits and also minimizing risk of theft by pooling their deposits with other depositors.
Banks then use the bulk of the deposits to provide loans to different entities. These loans can range from car loans to house loans all the way to business loans or even short term loans to other banks.
Payment Transactions
Companies like MasterCard (MA), Visa (V), and American Express (AXP) provide payment networks to help rapidly facilitate payment transactions. These companies provide fraud protection and payment protection for unauthorized transactions.
These payment networks also provide temporary capital liquidity by giving user's credit, adding to the purchasing power of individuals and businesses.
Why Buy a Financial Stock?
Financial stocks can provide returns that exceed the overall market. They are drivers of business and commerce. When the stock market goes up, financial stocks will typically move with a higher beta than the overall market.
Strong financial stocks will typically provide stable growth over multiple years. These stocks may have a fortress balance sheet or a niche regional market.
What Makes a Financial Stock Go Up?
Are Financial Stocks Risky?
Do Financial Stocks do Well in a Recession?
Do Financial Stocks Benefit From Inflation?
How are Financial Stocks Affected by Interest Rates?
Is it Smart to Invest in Bank Stocks?
What to Look for in Financial Stocks?