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Bank Stocks To Buy In 2021

If you are looking for information about bank stocks, you came to the right place! In this article I will provide you with a list of bank stock that will help you decide if stocks in certain niches are interesting as an investment. Want to learn more first? Then read our what is a stock guide, or find out everything about buying stocks.

What is an bank stock?

A bank stock is a company that deals with banking. It can be through providing loans, accepting deposits or investing money. There are some bank stocks that have a diversified business model.

This means that they provide some of the previously mentioned services as well as something else, such as insurance or mortgages. In this list I will include some bank stocks from both categories: those with a strong focus in one type of service and others with more business models.

Advantages bank stock

If you are planning to invest in bank stocks, there are some advantages that other companies don’t have. For example:

• Bank stocks usually pay higher dividends because their income models imply having a lot of capital.
• Good bank stocks tend to grow faster than average stock market indexes. They can do so by charging more interest.
• Many times they have a greater profit margin because they usually operate in a more competitive business.

Disadvantages bank stocks

However, there are some obstacles you should consider if you want to invest in good bank stock. Some of these disadvantages include:

• They often have a relatively high volatility compared with other companies.
• In periods of economic crisis bank stocks tend to severely decrease in value.
• They are usually harder to analyze because their business models can be more complicated.

If you don’t consider these disadvantages as something relevant, now I will provide you with a list of the best bank stocks that can potentially help your investment strategy:

The Best Bank Stocks Of 2021

We made a list of the best bank stocks to invest in for the next 5 years. We analyzed all the Bank stock from different niches and made a list of those that have one or more important characteristics: good dividend yield, high expected growth rate, great assets under management (AUM) and low risk.

1. Bank of America Corporation (NYSE:BAC)
2. JPMorgan Chase & Co. (NYSE:JPM)
3. Morgan Stanley (NYSE:MS)
4. Wells Fargo & Company (NYSE:WFC)
5. Goldman Sachs (NYSE:GS)

1. Bank of America Corporation (NYSE:BAC)

The Bank Of America was founded in 1904 and it has its headquarters in Charlotte, North Carolina. It provides services through 2 main business divisions which are the Consumer Banking division and the Global Wealth & Investment Management (GWIM) division. Want to know more then read our buy Bank of America stock guide.

• The latest is one of the biggest wealth management companies in the US and it has over $1.7 trillion in client assets under management (AUM).

The company announced a dividend yield of 2.6%, which is higher than the average because the last recession hurt its business model, forcing it to increase fees and reduce dividends.

2. JPMorgan Chase & Co. (NYSE:JPM)

The company provides a wide variety of services through its divisions: the Consumer and Community Banking (CCB), the Corporate & Investment Bank (CIB) and Asset Management. Want to know more then read our buy JPMorgan stock guide.

• JPMorgan was founded in 1799 and it is headquartered in New York City. It is one of the largest banks in the US with more than $2 trillion in assets.

The company recently increased its dividend yield to 2.4% which is higher than the average bank stock in this list according to ycharts. This raise can be seen as a signal for what’s coming next in terms of dividends.

3. Morgan Stanley (NYSE:MS)

Morgan Stanley was founded in 1935 and it has its headquarters in New York. It provides a variety of services through 4 main divisions: Institutional Securities, Wealth Management, Asset Management and Principal Investments. Want to know more then read our buy Morgan Stanley stock guide.

The company recently increased its dividend yield to 2.5% which is higher than the average bank stock in this list according to charts. This raise can be seen as a signal for what’s coming next in terms of dividends.

4. Wells Fargo & Company (NYSE:WFC)

Wells Fargo was founded in 1852 and it has its headquarters in San Francisco, California. It provides banking services through a wide variety of channels including the Internet, stores, phone calls and ATMs. Want to know more then read our buy Wells Fargo stock guide.

• In 2016 it served more than 68 million customers in thousands of locations in 39 states and in Canada.

The company recently increased its dividend yield to 2.9%, which is higher than the average bank stock in this list according to ycharts. This raise can be seen as a signal for what’s coming next in terms of dividends.

5. Goldman Sachs (NYSE:GS)

Goldman Sachs was founded in 1869 and it has its headquarters in New York. It provides a wide variety of services through several divisions including Investment Banking, Securities, Investing & Lending, Asset Management and Private Wealth Management.

The company recently increased its dividend yield to 2.0% which is higher than the average bank stock in this list according to ycharts. This raise can be seen as a signal for what’s coming next in terms of dividends. Want to know more then read our buy Goldman Sachs stock guide.

How to invest in Bank stocks

How to invest in banking stocks, a good question. You have to take into consideration that the risk is higher than with other stocks due to the regulation, but it’s also paying off almost almost 10 times more than an average S&P 500 stock. Bank stock dividends are safe and growing.

The main way of investing in bank stocks is buying them directly through mergers & acquisition or secondary markets like eToro, DEGIRO o Interactive brokers. If you want to own a stock you have to trade it so there is no risk of being diluted in the company’s shares when they decide to issue more.

Should you invest in Bank stocks?

While it is somewhat hard to answer this question because there are always new banks popping up and existing banks disappearing. So, should you invest in banking stock?

Well, it is somewhat of a no brainer to me. These financial institutions are so often ranked as the most stable companies in the world with one of the highest dividend yields. You can literally compare them to real estate stocks because they are so essential to society and people’s lives.

1. The good thing about banking stocks is that it has relatively low entry point in comparison with their return.
2. It’s also worth mentioning that if you are considering investing in banks, make sure to diversify them because they are highly correlated with each others.
3. When the market is flying high ( good time for banking stocks ) they will do well but when it crashes they will not be able to avoid taking some hits.

How To Buy Banking Stock Step By Step Guide

Do you want to know how to buy into bank stocks It can be difficult to navigate through all the outdated and incorrect information related to purchasing stocks. We believe buying stocks should be accessible for all, which is why we’ve created this handy guide on where to buy bank shares online.

Passo 1: aprire un conto con un broker

Dovrà registrarsi con un broker, di questi tempi non si può fare a meno di una volta ed è fondamentale usare un broker regolamentato e autorizzato ad operare, altrimenti rischia di perdere fondi. eToro è uno di questi broker e una delle migliori opzioni per comprare azioni in tutto il mondo, per iscriversi basta cliccare su open account nella tabella seguente o confrontare altre opzioni.

Passo 2: Verificare il suo account

Poiché eToro è una piattaforma regolamentata, dovrà completare il processo KYC, questa è una pratica standard e richiede solo un paio di minuti. Dovrà fornire un documento d'identità con foto (passaporto, patente) e una prova di indirizzo (bolletta, estratto conto bancario).

Passo 3: Finanziare il suo conto eToro

Una volta iscritto e verificato il suo conto, dovrà depositare dei fondi. eToro accetta carte di credito/debito, trasferimenti bancari e anche portafogli elettronici. Quindi qualunque sia la sua preferenza ci sarà qualcosa per lei.

Step 4: Search For The Stock From A Bank You Want To Buy

Ora che ha finanziato il suo conto eToro, digiti "nome dell'azione che vuole comprare" nella barra di ricerca in alto e prema "trade".

Step 5: Buy Bank Stocks

Non resta che comprare le azioni desiderate. Inserisca semplicemente la quantità di azioni che vuole acquistare e prema il pulsante "compra". L'importo acquistato verrà accreditato automaticamente sul suo conto dove potrà monitorare la sua performance.

Conclusion How To Buy Stocks From A Bank

Tutto sommato, il mercato azionario ha una quantità incredibilmente grande di aziende che hanno il potenziale per risolvere alcuni problemi importanti nello spazio commerciale. Dopo aver letto questa guida dovrebbe sapere come comprare questo investimento usando il miglior broker o piattaforma.

Raccomandiamo eToro a chiunque cerchi un exchange regolamentato, facile da usare e con tutte le funzioni. Come per qualsiasi broker, è fondamentale impostare 2FA quando si usa eToro perché garantisce che i suoi fondi siano completamente sicuri.

How To Find The Best Bank Stocks In 2021

How can you find the best bank stocks right now, you just have to look at the charts. The best bank stocks are those that give you great yield for relatively low entry point. Citibank, Wells Fargo, Bank Of America e Goldman Sachs are also among my top picks. They all have great yields but you should be prepared to wait quite some time before they start paying off dividends.

Why invest in bank stocks?

Numerous studies have shown that the stock market provides us with the best returns over time. When you buy bank stocks, your money is being invested into a company. That company makes profit with the money it invests. The profit they make will be reflected in their stock price.This can be translated as an higher return on your investment because of this profit

Conclusion about bank stocks

Bank stocks are great investments if you can withstand the not so low volatility. They are relatively safe, they pay off dividends almost every year and it’s relatively easy to find good ones with high yield.

1. Banks will always be essential for our economy because otherwise they will stop paying off their dividends, which would cause chaos in many countries around the world.
2. If you want to read more tips and strategies about bank stocks, just hit me up in the comments. If you have any questions don’t hesitate to ask them down below via the comment section. I would be glad to answer them all 🙂