Should You Be Buying Financials?

The banking sector took a hammering during the credit crisis - but now some stocks look attractive again according to analysts

Emma Wall 6 August, 2013 | 11:05AM

Once the cornerstone of any income portfolio, financial stocks tumbled from favour during the global recession.

Banks could no longer be relied upon to pay regular dividends, depleting the pot for those reliant on yield. But over the past five years due diligence, government bailouts and more stringent operating guidelines have meant banks are returning to the dividend table. 

Investors should be aware they may have missed the first bounce back however. That happened in 2012, when Barclays share price bounced 31% and hedge fund manager Crispin Odey - among others - reaped the rewards.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barclays PLC104.60 GBX-1.17
Lloyds Banking Group PLC27.79 GBX-1.33
The Royal Bank of Scotland Group PLC110.60 GBX-1.16

About Author

Emma Wall  is former Senior International Editor for Morningstar

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