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 other 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 as a beginner depends on several factors, including 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 over the long term.

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 Aug 17, 2026 at 9:34 AM EST | Fact-checked by Frank Bass

Key Points

Berkshire Hathaway holds a vast portfolio and immense cash reserves, enhancing its investment stability.
JPMorgan Chase exhibits strong profitability and leadership in both consumer and investment banking.
Visa operates a dominant payment network with significant growth potential in diverse transaction types.

Financial stocks are a category of publicly traded companies that includes banks, insurance companies, financial service providers, and other financial institutions. Companies in the financial sector can deliver excellent long-term returns, and some look more attractive than others.

In this article, we'll explore some of the best financial stocks you can invest in for 2026 and beyond.

3 top Financial stocks for 2026

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield	Industry
Berkshire Hathaway (NYSE:BRKA)	$1.1 trillion	0.00%	Diversified Financial Services
JPMorgan Chase (NYSE:JPM)	$947.6 billion	1.68%	Banks
Visa (NYSE:V)	$716.8 billion	0.70%	Diversified Financial Services

Data as of Aug 27, 2026. Showing 3 of 3 total entries.

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1. Berkshire Hathaway

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NYSE: BRKA

Berkshire Hathaway

Today's Change

(-0.13%) $-984.72

Current Price

$755,943.11

Key Data Points

Market Cap

$1.1T

Day's Range

$748724.62 - $757429.80

52wk Range

$698000.00 - $806102.81

Volume

189

Avg Vol

187.4

Gross Margin

23.52%

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2. JPMorgan Chase

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NYSE: JPM

JPMorgan Chase

Premium Feature

Moneyball Superscore

70/100

Today's Change

(-0.64%) $-2.28

Current Price

$354.22

Key Data Points

Market Cap

$948B

Day's Range

$352.23 - $357.57

52wk Range

$279.10 - $366.50

Volume

5.2M

Avg Vol

8.7M

Dividend Yield

1.68%

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JPMorgan Chase (JPM -0.64%) 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

Premium Feature

Moneyball Superscore

84/100

Today's Change

(-1.10%) $-4.24

Current Price

$379.66

Key Data Points

Market Cap

$717B

Day's Range

$378.50 - $381.77

52wk Range

$293.89 - $385.57

Volume

6.6M

Avg Vol

8.1M

Gross Margin

77.16%

Dividend Yield

0.70%

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Visa (V -1.10%) operates the world's largest payment network. Along with Mastercard (MA -1.13%), 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 more than $14 trillion in annualized payment volume across almost 5 billion branded debit and credit cards. But Visa's management has estimated an addressable opportunity of $145 trillion, including areas where the company has barely scratched the surface, such as person-to-person and business-to-business payments.

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How to buy financial stocks

Once you've identified financial stocks you want to invest in, the process of buying shares is pretty straightforward:

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in financial stocks

There are some major perks of investing in financial sector stocks, including but not limited to:

Many financial sector stocks are reliable sources of dividend income.
Banks benefit from economic growth, making them generally solid stocks to hold in prosperous economic times.
Banks often trade for significantly lower valuations than stocks in many other sectors.

On the other hand, there are some risk factors to be aware of:

There's significant regulatory risk in the financial sector. Banks must adhere to capital requirements, stress testing, and consumer protection rules.
The financial industry is susceptible to panics, as we saw in the 2008 financial crisis and again with certain regional banks in 2023.
Banking is a highly cyclical business, meaning that it can perform poorly in recessions and other tough times.

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Methodology: How these stocks were chosen

These three stocks were chosen using the same general framework I've used across two decades of analyzing and investing in the financial sector. I look for durable competitive advantages, smart capital allocation, and businesses with a track record of resilience across economic cycles. They aren't the highest-paying stocks, nor are they the cheapest. Rather, in a cyclical and sometimes volatile industry, my focus is on quality and durability.

For example, JPMorgan Chase has massive scale and the strongest balance sheet among the largest U.S. banks, and Visa not only benefits from the secular tailwinds towards digital payments but is also part of an effective duopoly.

In a nutshell, these three stocks represent a combination of strength, competitive advantages, and strong management track records that should serve long-term investors well.

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The bottom line

There are some excellent financial stocks you can invest in for the long term. Of course, there are risk factors to be aware of, but with some of the top financial companies, the risk-reward dynamics make a lot of sense. The three mentioned in this article -- Berkshire Hathaway, JPMorgan Chase, and Visa -- have excellent track records of delivering market-beating total returns for investors, and could certainly continue to do so in the future.

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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

@MattFrankelUSC

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

Key Points