Banking & Finance

Interest Rates Are Rising Fast: Buy These 5 Big Dividend-Paying Banks Now

Regions Financial

This stock does a ton of business in the fast-growing southern and southeastern parts of the country. Regions Financial Corp. (NYSE: RF) provides banking and bank-related services to individual and corporate customers. It operates through the following three segments.

The Corporate Bank segment offers commercial banking services, such as commercial and industrial, commercial real estate and investor real estate lending; equipment lease financing; deposit products; and securities underwriting and placement, loan syndication and placement, foreign exchange, derivatives, merger and acquisition, and other advisory services. It serves corporate, middle market and commercial real estate developers and investors.

The Consumer Bank segment provides consumer banking products and services related to residential first mortgages, home equity lines and loans, branch small business and indirect loans, consumer credit cards and other consumer loans, as well as deposits.

The Wealth Management segment offers credit-related products and retirement and savings solutions, as well as trust and investment management, asset management and estate planning services to individuals, businesses, governmental institutions and nonprofit entities.

As of February 25, 2021, it operated 1,300 banking offices and 2,000 automated teller machines across the South, Midwest and Texas. Regions Financial was founded in 1970 and is headquartered in Birmingham, Alabama.

Investors receive a 3.15% dividend. Jefferies has set a $24 price target on Regions Financial stock. The consensus target is $22.67, and the final trade for Tuesday was reported at $21.58.

Wells Fargo

This large-cap bank is perhaps the best value play for 2021 and beyond. Wells Fargo & Co. (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.9 trillion in assets.

The company provides banking, insurance, investments, mortgage and consumer and commercial finance through 8,700 locations, 12,800 ATMs, the Internet and mobile banking. It also has offices in 36 countries to support customers who conduct business in the global economy. Wells Fargo serves one in three households in the United States.

The company posted second-quarter solid results and doubled the firm’s dividend, which now translates to a 1.74% yield for shareholders. The Jefferies price target for the money center giant is $52. The consensus price target is $50.31, and Wells Fargo stock closed at $45.92 on Tuesday.

Five top banks to look at now are really value plays when compared to the very overbought and pricey stocks market as a whole. With earnings for the quarter expected to be solid, investors can feel good about adding positions in any of these top stocks now.

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.