3 financial stocks to buy in April
- Western Union (Wu): Provides multiple essential services to the unbanked population globally.
- Sofi Technologies (SOFI): seeks new investment opportunities and has set up a central banking system that will enable it to diversify its sources of income.
- First Hawaiian (FHB): continued to pay dividends despite economic pressures in Hawaii during the pandemic, showing its resilience under pressure.
Banks have been in real trouble lately, but there is still hope that they can bounce back. After a few years of rock bottom interest rates, the environment is changing, leading to renewed interest in financial stocks.
Federal Reserve policy is generally known to have a neutral to dovish stance, implying that the Fed does not wait until there is an imbalance to get involved in the market. At present, however, this is not necessarily the case, as it is geared towards stabilizing inflation.
With rising interest rates, banks have more opportunities to earn more money on loans. They can charge higher interest rates than before while increasing their regular income stream.
These financial stocks have great prospects right now due to the state of the economy. They often use these profits to support the payment of generous dividends and improve their operations to reward shareholders with capital increases. Therefore, keep these choices in mind when analyzing your portfolio.
Western Union (WU)
Western Union (NYSE:Wu) has been around for over 100 years and provides financial services to those in need. It offers money transfers and payment systems, international money transfers, currency exchange, ATM network and mobile banking.
The company was originally founded as a telegraph company. Eventually, it expanded into other areas of business such as insurance, securities trading and banking.
Although Western Union is a historic company, it still provides valuable services and contributes significantly to the industry worldwide. Around 2 billion people still do not have access to a conventional bank account or any other financial institution and frequently use the company’s offerings.
Western Union relies on its consumer-to-consumer services and transfers. This allows customers to send payments across borders, helping them pay bills and transfer money internationally.
WU stock has been a great choice for income investors looking to pay regular dividends. The company has experienced healthy growth and maintained the payment of dividends. Therefore, it’s an all-weather game that’s a great option for your wallet.
SoFi Technologies (SOFI)
Sofi Technologies (NASDAQ:SOFI) offers personal financial products for individuals and families, including student and auto loan refinancing. It has an app that helps people save money and track their budget.
SoFi uses artificial intelligence (AI) to deliver financial products to its customers. Along with its app, the company also has an online platform where users can manage their finances and make payments with ease.
Since the beginning of the year, investors have lost interest in growth stocks due to the general macroeconomic environment. Consequently, SoFi is not doing so well and has lost a lot of momentum since the start of last year. Stocks are down 58% year-to-date, making it a contrarian game.
SoFi invested heavily to grow its banking platform and acquired cloud-based core banking system Technisys to help it grow. The company has also received a banking charter which will enable it to diversify its income.
First Hawaiian (FHB)
First Hawaiian (NASDAQ:FHB) is a leading global bank in the Pacific and Latin American markets. It has over 2,100 employees in Hawaii, Guam and Saipan and has been providing banking services for over 100 years.
The company is focused on providing banking services and solutions to individuals, small businesses and large corporations worldwide. It offers mortgages, car loans, business leases and more.
First Hawaiian understands its market like no other. She has been active on the islands for many decades and her knowledge of the local industry sets her apart.
FHB stock is also to be commended for its handling of the pandemic. Unfortunately, the impact of Covid-19 on economic enterprises has been much worse in Hawaii than in the mainland America. However, the bank continued to pay dividends despite his pressure. Its yield of almost 4% is exceptional in the industry. It is therefore a solid name among financial stocks.
At the date of publication, Faizan Farooque did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.