Do most financial companies in the S&P 500 pay dividends?

Although the largest financial sector company (Berkshire Hathaway) does not pay a dividend, most large-cap bank, insurance, and financial sector stocks do. One popular index fund, the State Street Financial Select Sector ETF (NYSEMKT: XLF), has a dividend yield of about 1.4%, which is derived from dividends paid by its portfolio companies.

How can I research a financial stock before investing?

The best way to research a financial stock before investing is to visit the company's investor relations page and review its recent results. It can also be useful to download the annual report, which typically has a thorough description of the business on the first few pages. By using some financial-specific metrics like net interest margin, return on assets, and more, you can use the information in these sources to evaluate bank stocks.

Should beginners invest in individual bank stocks or ETFs?

The best way to invest in banks if you're a beginner depends on several factors, such as your risk tolerance and investment goals. Investing in individual bank stocks can be the more volatile option, but you also have more upside potential if that particular bank does well. On the other hand, with bank stock ETFs, you're investing in the industry as a whole, so if banks generally do well, you will too.

What are good financial stocks for beginners?

Berkshire Hathaway, JPMorgan Chase, and Visa are just some of the smart choices for beginner investors. As for financial sector exchange-traded funds (ETFs), the Vanguard Financials ETF (NYSEMKT:VFH) is among the best.

What is the best financial stock?

There's no single financial-sector stock that is clearly the best. However, some of the top companies in the financial sector include Berkshire Hathaway, JPMorgan Chase, and Visa. All three have excellent track records of producing strong returns for investors over time.

Are financial stocks a good buy?

Many financial sector stocks trade at lower price-to-earnings ratios than companies in other popular sectors. There are certainly some risk factors to be aware of, but many financial stocks look like excellent values from a long-term perspective.

Best Financial Stocks for 2026 and How to Invest

Best Financial Stocks to Buy in 2026 and How to Invest in Them

By Matthew Frankel, CFP – Updated May 8, 2026 at 2:15 PM EST | Fact-checked by Frank Bass

Key Points

Invest in Berkshire Hathaway for diverse sector exposure and strong financial health.
Consider JPMorgan Chase for robust profitability across banking sectors.
Visa offers growth potential in global payment processing markets.

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Berkshire Hathaway (NYSE:BRKA)	$1.0 trillion	0.00%	Diversified Financial Services
JPMorgan Chase (NYSE:JPM)	$809.5 billion	1.95%	Banks
Visa (NYSE:V)	$600.6 billion	0.79%	Diversified Financial Services

Data as of May 10, 2026. Showing 3 of 3 tickers.

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1. Berkshire Hathaway

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NYSE: BRKA

Berkshire Hathaway

Today's Change

(0.16%) $1136.81

Current Price

$717386.81

Key Data Points

Market Cap

$1.0T

Day's Range

$714775.88 - $720280.00

52wk Range

$685150.00 - $779853.26

Volume

134

Avg Vol

198

Gross Margin

23.70%

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2. JPMorgan Chase

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NYSE: JPM

JPMorgan Chase

Today's Change

(-1.36%) $-4.17

Current Price

$302.10

Key Data Points

Market Cap

$809B

Day's Range

$300.50 - $308.99

52wk Range

$256.00 - $337.25

Volume

9.5M

Avg Vol

9.6M

Dividend Yield

1.95%

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JPMorgan Chase (JPM -1.34%) is the largest U.S. bank by assets and has an excellent track record across various economic environments. It's tough to make a case against JPMorgan Chase as an investment if you want bank stock exposure in your portfolio. The bank consistently posts some of the highest profitability metrics in the industry and operates across both consumer and investment banking.

JPMorgan Chase is a leader in consumer banking, business banking, and investment banking. It has fantastic asset quality and a great track record of creating value for shareholders, and there's no reason to believe this will change anytime soon.

3. Visa

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NYSE: V

Visa

Today's Change

(-0.77%) $-2.47

Current Price

$318.81

Key Data Points

Market Cap

$601B

Day's Range

$316.28 - $321.23

52wk Range

$293.89 - $375.51

Volume

360K

Avg Vol

7.5M

Gross Margin

78.28%

Dividend Yield

0.79%

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Visa (V -0.77%) operates the world's largest payment network. Along with Mastercard (MA -1.04%), Visa has half of a near-duopoly over the payment processing industry. But don't make the mistake of thinking Visa doesn't have room to grow.

The company currently processes about $13 trillion in annualized payment volume across almost 5 billion branded debit and credit cards. But Visa's management has estimated that it has a $185 trillion addressable opportunity, including areas where the company has barely scratched the surface, such as person-to-person and business-to-business payments.

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Financial stock FAQ

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst specializing in the real estate and financial sectors. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, Globe St, The National Desk, and other TV networks and publications for his real estate, financial, stock market, and investing expertise.

TMFMattFrankel

@MattFrankelCFP

Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Matt Frankel, CFP has positions in American Express, Bank of America, Berkshire Hathaway, Block, and PayPal and has the following options: long January 2027 $75 calls on PayPal, long January 2027 $95 calls on PayPal, short January 2027 $135 calls on PayPal, and short January 2027 $85 calls on PayPal. The Motley Fool has positions in and recommends Berkshire Hathaway, Block, Goldman Sachs Group, JPMorgan Chase, Mastercard, PayPal, S&P Global, and Visa. The Motley Fool recommends CME Group and recommends the following options: long January 2027 $42.50 calls on PayPal and short March 2026 $65 calls on PayPal. The Motley Fool has a disclosure policy.

Best Financial Stocks to Buy in 2026 and How to Invest in Them