Financial stocks are a category of publicly traded companies that includes banks, insurance companies, financial service providers, and more. Companies in the financial sector can produce excellent long-term returns, and there are some that look more attractive than others.
Best financial stocks for 2026
These are some mature, easy-to-understand financial sector businesses that are smart choices for beginner investors:
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Berkshire Hathaway (NYSE:BRK.A) | $1.0 trillion | 0.00% | Diversified Financial Services |
| JPMorgan Chase (NYSE:JPM) | $832.7 billion | 1.90% | Banks |
| Visa (NYSE:V) | $615.4 billion | 0.76% | Diversified Financial Services |
1. Berkshire Hathaway
NYSE: BRK.A
Key Data Points
Berkshire Hathaway (BRK.A +0.96%) (BRK.B +1.35%) is not always thought of as a financial sector stock. However, it is an insurance company at heart, so it is technically a part of the sector.
Berkshire is the parent company of more than 60 businesses, including GEICO, BNSF Railroad, Duracell, and many others. Investors in the company gain exposure to its substantial stock portfolio, which also includes large stakes in financial heavyweights Bank of America (BAC +1.56%) and American Express (AXP +0.19%). Even with legendary CEO Warren Buffett stepping down at the end of 2025, Berkshire should still be a solid investment choice for decades to come.
2. JPMorgan Chase
NYSE: JPM
Key Data Points
JPMorgan Chase (JPM +0.75%) 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 has vast operations in both consumer and investment banking.
3. Visa
NYSE: V
Key Data Points
Two important metrics for analyzing insurance stocks
- Combined ratio: To compute this ratio, first add (combine) the amount of money an insurance company pays out in claims to the amount of money the company spends on other business expenses. Divide that amount by the amount the insurance company collects as premium income. If an insurer is a profitable underwriter, the result should be less than 100%.
- Investment margin: Insurers aim to profit from underwriting policies. They can also make money by investing the premiums they collect until they use the money to pay any insurance claims. How profitably an insurer invests -- its investment margin -- is important since investment income is often the primary source of profits for an insurance company. Most insurance companies invest in rather safe fixed-income instruments like Treasury securities and corporate bonds.
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