September 4, 2019

7 of the Best Financial Stocks to Buy Now


Financial stocks have been beaten up on fears of a slowing economy and lower interest rates



When the U.S. Federal Reserve ended its interest rate hiking cycle and started lowering rates instead, financial stocks drifted lower. With lower rates, banks earn fewer profits from the interest rate spread. Plus, rate cuts are usually done to stimulate a slowing economy. If banks rely on a healthy economy to get deals and drive more business, then we may expect profits to slow down.

But there are several financial stocks to buy now that have the potential to bounce back higher as profit growth steadies.
A few of these stocks to buy happen to be Canadian banks, which means there are a few important things to consider when investing in these stocks:


  • Even though they are listed on U.S. exchanges, a drop in the Canadian dollar against the U.S. dollar may hurt their stock price.
  • Investors may want to hold Canadian banks in a retirement account to avoid the 15% withholding tax.



With that out of the way, the here are the best financial stocks to own based on valuation, future growth prospects and dividend yield.



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