Best dividend large-cap financial stocks to invest in Q3 2024

The financial sector underpins the global economy, providing essential services that keep businesses and individuals moving forward. For income-oriented investors, certain large-cap financial institutions offer more than just stability – they deliver the added benefit of consistent dividends, creating a compelling blend of growth potential and steady cash flow.

This article explores top dividend-paying large-cap financial stocks positioned for success in the coming quarter. At the forefront is Ares Management Corporation, a global leader in alternative investment management, known for its diverse portfolio and strategic growth. Ameriprise Financial stands out in the wealth management space, offering comprehensive financial planning services to millions of clients. Arthur J. Gallagher & Co dominates the insurance brokerage and risk management sector, providing crucial services to businesses worldwide. Thomson Reuters rounds out our selection as a powerhouse in financial information and technology solutions, with services indispensable to professionals across industries.

These financial giants are not just adapting to market changes – they're shaping the future of finance while rewarding shareholders. Discover how these dividend powerhouses could fortify your portfolio in Q3 2024!

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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in top 10 stocks mentioned in this article 5 years ago.

Now, let`s take a closer look at each of the companies:

  • Ares Management Corporation (ARES)

    Ares Management Corporation isn't a household name, but in the world of alternative investments, they're a major player. Forget traditional stock and bond funds, Ares focuses on credit, private equity, and real estate investments, offering a wider range of return potential. Imagine them as the alternative asset architects, crafting unique investment strategies that go beyond the typical market offerings. Their diverse investment options cater to institutional investors seeking high returns, offering a path to potentially outperform traditional markets. Their experience and focus on alternative investments position them as a leader in this growing asset class.

    Ares Management Corporation financial statements

    Analysts recommendation: 2.06

    Financial Health

    • Return on assets (ROA): 1.88%
    • Return on equity (ROE): 25.33%
    • Return on investment (ROI): 2.55%

    Profitability

    • Gross margin: 81.78%
    • Operating margin: 31%
    • Net profit margin: 11.17%

    Growth

    • EPS (past 5 years): 52.32%
    • EPS (current): 2.28
    • EPS estimate (next quarter): 0.99
    • EPS growth (this year): 17%
    • EPS growth (next year): 40.68%
    • EPS growth (next 5 years): 26.05%
    • EPS growth (quarter-over-quarter): -31.13%
    • Sales growth (past 5 years): 47.97%
    • Sales growth (quarter-over-quarter): -8.88%

    💡 Why invest in Ares Management Corporation?

    Ares' unique position in the alternative investment market offers several potential advantages for investors seeking portfolio diversification and high returns:

    • Diversification: By including alternative investments alongside traditional assets, you can potentially reduce overall portfolio risk and enhance returns.
    • Focus on High-Return Strategies: Ares specializes in credit, private equity, and real estate investments, which have historically offered higher potential returns compared to stocks and bonds.
    • Experienced Investment Team: They boast a team of seasoned professionals with a proven track record of success in managing alternative assets.
    • Global Investment Reach: Ares invests across various sectors and geographies, offering exposure to a wider range of opportunities.

    🐌 Key considerations before investing in Ares Management Corporation

    However, before investing in Ares Management, it's crucial to consider the potential challenges:

    • Higher Fees: Alternative investments often come with higher fees compared to traditional mutual funds or ETFs. Understand the fee structure before investing.
    • Lower Liquidity: These investments are typically less liquid than stocks and bonds, meaning it might be harder to quickly sell your holdings if needed.
    • Higher Risk: Alternative investments can be inherently riskier than traditional assets. They may involve complex investment strategies and underlying assets that are illiquid or difficult to value.
    • Limited Transparency: Due to the nature of alternative investments, there might be less transparency compared to publicly traded stocks and bonds.

    Final thoughts on Ares Management Corporation

    Ares' focus on alternative investments, their experienced team, and the potential for high returns paint a promising picture for investors seeking portfolio diversification and a boost in returns. However, the higher fees, lower liquidity, inherent risk, and potentially limited transparency necessitate careful consideration. Thorough research on Ares' specific investment strategies, fee structures, and a clear understanding of your risk tolerance and investment goals are crucial before investing. Remember, alternative investments can be a powerful tool for portfolio diversification, but they're not without their drawbacks. Ares could be the architect of your alternative investment strategy, but be sure the foundation is built on a clear understanding of the risks involved.

  • Ameriprise Financial (AMP)

    Ameriprise Financial might not be a flashy name on Wall Street, but they're a well-established player in the world of wealth management. Forget the impersonal online platforms or intimidating private banks, Ameriprise offers a blend of human expertise and digital tools to help individuals and families navigate their financial goals. Imagine them as your personal financial sherpa, guiding you through the complexities of investing, retirement planning, and wealth preservation. Their services cater to a broad range of clients, from young professionals just starting out to retirees seeking income security. Ameriprise' dedication to personalized service and a focus on long-term financial planning positions them as a key player in the ever-evolving wealth management landscape.

    Ameriprise Financial financial statements

    Analysts recommendation: 2.07

    Financial Health

    • Return on assets (ROA): 1.81%
    • Return on equity (ROE): 69.36%
    • Return on investment (ROI): 30.1%

    Profitability

    • Gross margin: 54%
    • Operating margin: 25.82%
    • Net profit margin: 18.83%

    Growth

    • EPS (past 5 years): 10.79%
    • EPS (current): 29.38
    • EPS estimate (next quarter): 8.52
    • EPS growth (this year): 18%
    • EPS growth (next year): 9.85%
    • EPS growth (next 5 years): 17.6%
    • EPS growth (quarter-over-quarter): 149.67%
    • Sales growth (past 5 years): 4.72%
    • Sales growth (quarter-over-quarter): 12.2%

    💡 Why invest in Ameriprise Financial?

    Ameriprise's unique position in the financial services industry offers several potential advantages for those seeking guidance on their financial journey:

    • Personalized Financial Planning: Ameriprise advisors work closely with clients to understand their unique goals, risk tolerance, and financial situation.
    • Wide Range of Investment Solutions: They offer access to a variety of investment products, including stocks, bonds, mutual funds, and alternative investments, allowing for customized portfolios.
    • Retirement Planning Expertise: Ameriprise advisors can help you navigate the complexities of retirement planning, including Social Security benefits and retirement account options.
    • Digital Tools and Resources: Ameriprise provides clients with access to online tools and educational resources to help them make informed financial decisions.

    🐌 Key considerations before investing in Ameriprise Financial

    However, before choosing Ameriprise for your wealth management needs, it's crucial to consider the potential drawbacks:

    • Fees: Wealth management services typically come with fees, which can eat into your investment returns. Be sure to understand Ameriprise's fee structure before signing up.
    • Investment Minimums: Some Ameriprise advisors may have minimum investment requirements, which could be a barrier for new investors with limited capital.
    • Focus on Investment Products: Ameriprise primarily focuses on investment products and services. They might not offer comprehensive financial planning services like estate planning or tax advice.
    • Advisor Quality: The quality of service can vary depending on the specific advisor you work with. Thorough research on their experience and investment philosophy is crucial.

    Final thoughts on Ameriprise Financial

    Ameriprise's focus on personalized service, their wide range of investment solutions, and the growing importance of financial planning paint a promising picture for those seeking guidance on their financial path. However, the associated fees, potential investment minimums, focus on investment products, and variability in advisor quality necessitate careful consideration. Thorough research on Ameriprise's fee structure, advisor selection process, and a clear understanding of your own financial needs and goals are crucial before partnering with them. Remember, a successful financial journey often starts with the right guide by your side. Ameriprise could be your partner in wealth management, but be sure to choose the right advisor to navigate the path to your financial goals.

  • Progressive Corp (PGR)

    In the ever-evolving landscape of insurance, where risks loom and policies provide shields, Progressive Corp. steers a steady course. This leading auto insurance provider isn't just crafting standard coverages; it's weaving a tapestry of innovative products, technology-driven solutions, and risk-based pricing models, aiming to transform the insurance experience. But can this insurance innovator translate its progressive approach into rewarding returns for your portfolio? Let's explore the hidden risks and opportunities propelling Progressive's rise, alongside the potential detours to consider before joining this insurance expedition.

    Progressive Corp financial statements

    Analysts recommendation: 2.04

    Financial Health

    • Return on assets (ROA): 7.08%
    • Return on equity (ROE): 29.92%
    • Return on investment (ROI): 19.99%

    Profitability

    • Gross margin: N/A
    • Operating margin: 11.63%
    • Net profit margin: 8.83%

    Growth

    • EPS (past 5 years): 8.09%
    • EPS (current): 9.77
    • EPS estimate (next quarter): 2.03
    • EPS growth (this year): 83.08%
    • EPS growth (next year): 9.79%
    • EPS growth (next 5 years): 39.8%
    • EPS growth (quarter-over-quarter): 425.02%
    • Sales growth (past 5 years): 14.48%
    • Sales growth (quarter-over-quarter): 20.56%

    💡 Why invest in Progressive Corp?

    Progressive's robust profile makes it a tempting pick for investors seeking exposure to the dynamic insurance sector. Here's what fuels its innovative approach:

    • Auto Insurance Powerhouse: Progressive boasts the title of the largest auto insurance carrier in the U.S., serving over 38 million policies across various car types and risk profiles. This leadership in auto insurance translates to predictable revenue streams and a strong foundation for future growth.
    • Beyond Standard Coverage: Recognizing the diverse needs of drivers, Progressive expands its offerings, developing specialty insurance for motorcycles, RVs, boats, and other vehicles. This strategic diversification mitigates risk and unlocks diverse avenues for growth beyond traditional auto insurance.
    • Tech-Driven Navigator: Progressive prioritizes innovation, leveraging technology to streamline the insurance experience. Features like real-time quotes, telematics-based discounts, and mobile apps enhance customer convenience and engagement.
    • Risk-Based Pricing Maestro: Progressive thrives on its data-driven approach, utilizing advanced analytics to assess individual risk profiles and offer personalized pricing. This focus on fairness and affordability resonates with cost-conscious customers.

    🐌 Key considerations before investing in Progressive Corp

    While Progressive navigates the insurance labyrinth with its diverse offerings and tech-driven approach, there are some potential roadblocks to consider before joining this high-stakes journey:

    • Valuation Concerns: Like many established insurance companies, PGR's stock can be volatile, reflecting expectations of future insurance rate trends, economic conditions, and overall market sentiment. A cautious approach with a patient, long-term perspective is wise.
    • Competition Intensifies: InsurTech startups and digital platforms are vying for market share, challenging Progressive's dominant position. Stay informed about industry trends and how Progressive plans to maintain its competitive edge.
    • Regulatory Rollercoaster: Evolving regulations surrounding data privacy, autonomous vehicles, and insurance products can impact Progressive's operations and necessitate costly compliance measures. Monitoring regulatory developments and Progressive's adaptation strategies is crucial.
    • Economic Jitters: Global economic downturns can impact consumer spending on discretionary items like insurance, potentially affecting Progressive's profitability. Close monitoring of economic trends and their impact on the insurance sector is important.

    Final thoughts on Progressive Corp

    Progressive's leadership in auto insurance, diverse offerings, technology focus, and data-driven pricing model paint a potentially promising picture for long-term investors seeking exposure to the dynamic insurance sector. However, the volatile nature of the stock, rising competition, evolving regulations, and economic sensitivity warrant a measured approach. Thorough research, analysis of Progressive's future plans and the insurance landscape, and a clear understanding of your risk tolerance are crucial before joining this insurance expedition. Remember, navigating the intricate terrain of insurance stocks requires both a discerning eye for innovative solutions and a balanced perspective on potential challenges. Choose wisely, and your portfolio might just find itself cruising smoothly alongside the success story of Progressive Corp.

  • Thomson Reuters (TRI)

    Thomson Reuters is a name synonymous with trusted information in the financial and legal sectors. This Canadian multinational information conglomerate isn't just another data provider; it's a global leader in content, technology, and tools that empower professionals to navigate the ever-changing complexities of their fields. Imagine Thomson Reuters as the lighthouse, illuminating the path for lawyers, accountants, tax specialists, and financial analysts with comprehensive information, insightful analysis, and efficient workflow solutions. Their offerings encompass a vast array of resources. Thomson Reuters provides access to legal and regulatory databases, financial news and market data, tax and accounting information, and a suite of software tools designed to streamline research, analysis, and productivity. Their commitment to accuracy and integrity positions their information as a reliable source for professionals seeking to make informed decisions in a rapidly evolving world. Thomson Reuters' global reach and diverse product portfolio position it as a potential powerhouse within the information services industry. However, the information landscape is constantly shifting. Investors considering Thomson Reuters stock should carefully analyze the company's ability to adapt to evolving technologies, navigate potential economic fluctuations, and compete in a dynamic marketplace.

    Thomson Reuters financial statements

    Analysts recommendation: 2.76

    Financial Health

    • Return on assets (ROA): 11.92%
    • Return on equity (ROE): 20.21%
    • Return on investment (ROI): 17.09%

    Profitability

    • Gross margin: 29.35%
    • Operating margin: 29.35%
    • Net profit margin: 34.79%

    Growth

    • EPS (past 5 years): 50.27%
    • EPS (current): 5.25
    • EPS estimate (next quarter): 0.82
    • EPS growth (this year): 5.26%
    • EPS growth (next year): 11.3%
    • EPS growth (next 5 years): 8.2%
    • EPS growth (quarter-over-quarter): -33.43%
    • Sales growth (past 5 years): 4.34%
    • Sales growth (quarter-over-quarter): 8.46%

    💡 Why invest in Thomson Reuters?

    Several key factors make Thomson Reuters an attractive prospect for investors seeking exposure to the information services sector:

    • Global Leader in Information Services: Thomson Reuters stands as a dominant force in providing content, technology, and tools for legal, tax & accounting, and financial professionals worldwide.
    • Commitment to Accuracy & Integrity: Trusted information forms the cornerstone of Thomson Reuters' offerings, ensuring professionals can rely on their data and analysis.
    • Focus on Workflow Efficiency: Thomson Reuters prioritizes developing software tools that streamline workflows and enhance productivity for professionals.
    • Global Reach & Diverse Product Portfolio: Their presence in various markets and comprehensive suite of offerings mitigate risk by not relying on a single market segment or product category.

    🐌 Key considerations before investing in Thomson Reuters

    However, the information landscape is constantly shifting. Investors considering Thomson Reuters stock should carefully analyze the company's ability to adapt to evolving technologies, navigate potential economic fluctuations, and compete in a dynamic marketplace:

    • Evolving Technologies: The information services industry is constantly disrupted by new technologies like artificial intelligence and big data. Thomson Reuters must adapt to stay relevant.
    • Economic Fluctuations: Economic downturns can lead to decreased spending by businesses, impacting the demand for Thomson Reuters' services.
    • Competition: The information services industry is competitive, with established players and emerging companies vying for market share.
    • Regulation: Thomson Reuters operates in a heavily regulated environment, and compliance with data privacy and security regulations is crucial.

    Final thoughts on Thomson Reuters

    Thomson Reuters' established reputation, commitment to accurate information, focus on workflow efficiency, and global reach paint a potentially promising picture for long-term investors seeking exposure to the information services sector. However, the evolving technological landscape, economic fluctuations, competition, and regulatory environment necessitate a cautious approach. Thorough research, analysis of Thomson Reuters' plans for navigating these challenges, and a clear understanding of your risk tolerance are crucial before adding Thomson Reuters to your portfolio. Remember, the information services industry is dynamic, and Thomson Reuters' ability to maintain its leadership position will depend on its agility and continued focus on empowering professionals with the tools they need to navigate a complex world. Choose wisely, and your portfolio might find itself well-informed alongside the success story of Thomson Reuters.

  • Marsh & McLennan Companies (MMC)

    Marsh & McLennan Companies (MMC), often shortened to Marsh McLennan, isn't your typical household name. But behind the scenes, this global professional services firm plays a vital role in keeping businesses and societies resilient. Marsh McLennan isn't just about insurance or risk management; it's a multifaceted powerhouse offering a comprehensive suite of services to navigate the ever-changing risk landscape. But can Marsh McLennan's diverse expertise and global reach translate into rewarding returns for your investment portfolio? Let's delve into the forces propelling the company's growth and explore the potential challenges to consider before joining this behind-the-scenes expedition.

    Marsh & McLennan Companies financial statements

    Analysts recommendation: 2.83

    Financial Health

    • Return on assets (ROA): 9.57%
    • Return on equity (ROE): 33.55%
    • Return on investment (ROI): 14.9%

    Profitability

    • Gross margin: N/A
    • Operating margin: 26.05%
    • Net profit margin: 16.84%

    Growth

    • EPS (past 5 years): 18.44%
    • EPS (current): 7.87
    • EPS estimate (next quarter): 2.4
    • EPS growth (this year): 9.4%
    • EPS growth (next year): 9.04%
    • EPS growth (next 5 years): 8.1%
    • EPS growth (quarter-over-quarter): 14.04%
    • Sales growth (past 5 years): 8.88%
    • Sales growth (quarter-over-quarter): 9.25%

    💡 Why invest in Marsh & McLennan Companies?

    Several key factors make Marsh & McLennan an attractive investment opportunity for those seeking exposure to the dynamic risk management and professional services sectors:

    • Global Risk Management Leader: Marsh McLennan boasts a leading position in the global risk management and insurance broking industry. This leadership translates to a strong foundation for future growth and predictable revenue streams.
    • Beyond Insurance: Recognizing the evolving needs of its clients, Marsh McLennan goes beyond traditional insurance broking, offering a wider range of services like risk consulting, reinsurance solutions, HR consulting, and strategic advisory. This diversification mitigates risk by offering multiple revenue streams.
    • Data-Driven Approach: Marsh McLennan leverages data analytics to provide clients with customized solutions and optimize their risk management strategies. This focus on data-driven insights positions the company for success in an increasingly complex risk landscape.
    • Global Reach: With operations spanning across more than 130 countries, Marsh McLennan caters to a diverse clientele and benefits from the growth of various regional economies. This global presence positions the company for future expansion.

    🐌 Key considerations before investing in Marsh & McLennan Companies

    While Marsh McLennan navigates the intricate world of risk with its diverse services and global reach, there are some potential challenges to consider:

    • Economic Sensitivity: Downturns in the global economy can lead to reduced corporate spending on risk management and consulting services, impacting Marsh McLennan's profitability. Monitoring economic indicators is crucial for understanding potential market fluctuations.
    • Regulation Roundup: Evolving regulations surrounding data privacy, insurance markets, and financial services can impact Marsh McLennan's operations and necessitate costly compliance measures. Staying informed about regulatory developments and the company's adaptation strategies is important.
    • Competition Heats Up: Established consulting firms and niche players are constantly vying for market share, challenging Marsh McLennan's dominant position. Staying informed about industry trends and how Marsh McLennan plans to maintain its competitive edge is key.
    • Cybersecurity Threats: As Marsh McLennan deals with sensitive client data, cybersecurity threats pose a significant risk. The company's commitment to robust cybersecurity measures and its response to potential breaches are important factors to consider.

    Final thoughts on Marsh & McLennan Companies

    Marsh & McLennan Companies' leadership in risk management, diverse service offerings, data-driven approach, and global reach paint a potentially promising picture for long-term investors seeking exposure to the dynamic risk management and professional services sectors. However, the sensitivity to economic fluctuations, evolving regulations, rising competition, and cybersecurity threats necessitate a cautious approach. Thorough research, analysis of Marsh McLennan's future plans and the industry landscape, and a clear understanding of your risk tolerance are crucial before joining this behind-the-scenes expedition. Remember, navigating the intricate terrain of professional services stocks requires both a discerning eye for market trends and a balanced perspective on potential challenges. Choose wisely, and your portfolio might just find itself empowered alongside the success story of Marsh & McLennan Companies.

  • Chubb Limited (CB)

    Chubb Limited, incorporated in Switzerland and listed on the New York Stock Exchange (NYSE), is a global leader in property and casualty (P&C) insurance, accident and health (A&H) insurance, reinsurance, and life insurance. They hold the distinction of being the world's largest publicly traded P&C insurance company. Imagine them as the guardian against life's uncertainties. Chubb offers a comprehensive suite of insurance products and risk management services, catering to individuals, families, and businesses of all sizes. Whether it's protecting your car, home, or business from unforeseen events, or safeguarding your health and financial security, Chubb aims to provide peace of mind.

    Chubb Limited financial statements

    Analysts recommendation: 2.19

    Financial Health

    • Return on assets (ROA): 4.73%
    • Return on equity (ROE): 16.35%
    • Return on investment (ROI): 12.39%

    Profitability

    • Gross margin: N/A
    • Operating margin: 19.12%
    • Net profit margin: 17.94%

    Growth

    • EPS (past 5 years): 20.76%
    • EPS (current): 22.53
    • EPS estimate (next quarter): 5.16
    • EPS growth (this year): -4.67%
    • EPS growth (next year): 9.56%
    • EPS growth (next 5 years): 2%
    • EPS growth (quarter-over-quarter): 15.53%
    • Sales growth (past 5 years): 8.99%
    • Sales growth (quarter-over-quarter): 15.57%

    💡 Why invest in Chubb Limited?

    Chubb's strong position in the insurance industry offers several potential advantages for investors:

    • Essential Service: Insurance is a necessity for mitigating risk, making Chubb's services relevant across economic cycles. People and businesses will always need protection.
    • Diversified Product Portfolio: Chubb offers a wide range of insurance products, reducing their dependence on any single market segment. This diversification helps them weather economic downturns that might impact specific sectors.
    • Strong Financial Strength: Chubb maintains a solid financial position with high credit ratings, indicating their ability to meet future obligations.
    • Global Presence: Operating in over 50 countries and territories allows Chubb to benefit from growth opportunities in emerging markets.

    🐌 Key considerations before investing in Chubb Limited

    However, before investing in Chubb, it's crucial to consider the potential challenges:

    • Competition: The insurance industry is crowded with established players and new InsurTech entrants, vying for market share. Maintaining a competitive edge is crucial.
    • Regulation: The insurance sector is heavily regulated, and changes in regulations can impact Chubb's products, pricing, and profitability.
    • Catastrophe Risk: Natural disasters and other large-scale events can lead to significant insurance payouts, impacting Chubb's profitability.
    • Interest Rates: Investment income from insurance premiums can be affected by fluctuating interest rates.

    Final thoughts on Chubb Limited

    Chubb's strong brand reputation, diversified product portfolio, global reach, and financial strength paint a promising picture for long-term investors seeking exposure to the essential insurance sector. However, the competitive landscape, regulatory environment, catastrophe risk, and interest rate sensitivity necessitate careful consideration. Thorough research on Chubb's risk management strategies, their approach to navigating these challenges, and a clear understanding of your risk tolerance are crucial before adding Chubb Limited to your portfolio. Remember, in an uncertain world, Chubb strives to be a constant source of security. Their story could be a safe and stable addition to your investment journey.