Financial Stocks: Some Bigger Dividends Are on the Way

If you expect the financial sector to do well over time as it continues to recover from the meltdown of several years ago, you might want to consider financial stocks for your portfolio. Remember, for example, how successfully banks can levy fees and generate income, no matter what regulations are thrown at them. More than a handful of financial stocks had strong performances over the past year.

Prudential Financial (NYSE: PRU), for example, surged 49%, though it took a bit of a hit recently, as some worry about increased governmental oversight, with Prudential being named a "Systemically Important Financial Institution." Bank of America Corporation (NYSE: BAC) popped 43%. It recently got a go-ahead from the Federal Reserve to hike its dividend fivefold -- it will then yield around 1% -- and to engage in share buybacks as well. BB&T Corporation (NYSE: BBT) jumped 36%. It's a sizable Southeastern regional bank, and its fans admire its relative simplicity and conservative nature, along with its healthy balance sheet.

Source: Motley Fool

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