Banking & Finance

After Blowout Earnings, 5 Dividend-Paying Big Banks and Brokerage Firms to Buy

Citigroup

This top bank stock backed up some recently and is offering an outstanding entry point. Citigroup Inc. (NYSE: C) is a leading global diversified financial service company that provides consumers, corporations, governments a broad range of financial products and services.

Citigroup offers services such as consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management. It operates and does business in more than 160 countries and jurisdictions in North America, Latin America, Asia and elsewhere.

Trading at a still very cheap 9.9 times estimated 2021 earnings, this pick looks very reasonable in what remains a volatile stock market and in a sector that has dramatically lagged.

Investors receive a 2.97% dividend. The Morgan Stanley price target on Citigroup stock is $91, while the consensus target is $84.75. The last trade for Tuesday was posted at $68.60 a share.

Goldman Sachs

This financial services giant is a premier stock for those looking to add financials. Goldman Sachs Group Inc. (NYSE: GS) has a gigantic institutional equity, debt and derivatives business, an ultra-high net worth clientele, top investment banking and capital markets expertise, and the firm continues to be a dominant force around the world in the world of finance.

Its Investment Banking segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings and spin-offs; middle-market lending, relationship lending and acquisition financing; as well as transaction banking services.

This segment also offers underwriting services, such as equity underwriting for common and preferred stock and convertible and exchangeable securities, and debt underwriting for various types of debt instruments, including investment-grade and high-yield debt, bank and bridge loans and emerging- and growth-market debt.

Goldman Sachs Global Markets segment is involved in client execution activities for cash and derivative instruments; credit products; mortgages; currencies; commodities; and equities; and provision of equity intermediation and equity financing services. It also offers clearing, settlement and custody services.

Shareholders receive a 1.89% dividend. The $490 price target at BofA Securities is higher than the $451.41 consensus target for Goldman Sachs stock. The shares closed on Tuesday at $423.85.

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