If you’re looking for the best stocks to buy for the dividends, it may be time to look outside the U.S.
Right now, the average yield across the S&P 500 is just 1.4%, with leading megabank JPMorgan Chase & Co. (ticker: JPM) yielding only slightly more, at 2% at present. There are some smaller financial firms that provide better income potential, but they can carry elevated risks through investments in distressed companies or “leveraged” operations where companies take on big debts with plans of investing that borrowed cash.
The following stocks are truly bank stocks, with a core customer base of consumers and businesses rather than a reliance on sophisticated investment arms. They are all big in scale, with more than $50 billion in market value, but also reliable dividend providers with payouts of 3% or more – more than double what you’ll get from the typical S&P stock right now:
Banco Santander SA (SAN)
Market value: $77 billion
Dividend yield: 4.5%
Madrid-based Santander provides various financial services worldwide, ranging from retail banking to wealth management and corporate financial services. Founded in 1856, it is the pre-eminent bank in Spain and remains a go-to financial provider across the Spanish-speaking world with more than 3,000 branches across South America. As with other international stocks on this list, you’ll find the dividend payments don’t come on the regular cycle of U.S. blue-chip stocks. SAN pays out twice annually in April and October, but based on those generous distributions it yields roughly three times the dividend payout of the typical S&P 500 stock at present.
Canadian Imperial Bank of Commerce (CM)
Market value: $60 billion
Dividend yield: 4.1%
As you can probably guess, CIBC is a financial institution that mainly provides products and services to clients in Canada. Founded in 1867 and headquartered in Toronto, this company is closely tied into the economic fabric of our neighbors to the north. That said, it does do business in several key U.S. markets as well as overseas, with some 11 million customer accounts and more than $380 billion in assets under management. CIBC hasn’t missed a regular dividend since its first dividend payment almost 150 years ago, and recently increased payouts to 97 cents per share – up from 90 cents previously, and 53 cents per share at the beginning of 2015.
HSBC Holdings PLC (HSBC)
Market value: $184 billion
Dividend yield: 3.9%
HSBC is a London institution that is a bit smaller than domestic megabanks but would rank as slightly larger than Citigroup Inc. (C) and slightly larger than Goldman Sachs Group Inc. (GS) if it were headquartered here in the U.S. It operates a diversified business, including personal and commercial banking, wealth management and capital markets segments. With about $3 trillion in total assets and operations in more than 60 countries, HSBC ranks as the largest financial institution in Europe. HBC stock is up about 35% over the past 12 months with a generous dividend on top of that. If you are looking for a financial institution with scale but perhaps want to look beyond the U.S. for a leading financial stock, HSBC is worth a look.
Mizuho Financial Group Inc. (MFG)
Market value: $64 billion
Dividend yield: 2.9%
Japan’s economy has long had a reputation for stagnation, but economists are expecting comparatively brisk growth above 1% in 2025 as the nation continues to looks past previous years of sluggish growth and inflationary pressures. That bodes very well for Mizuho, one of the nation’s leading financial institutions. Japan has long been a linchpin of global commerce between the East and West, and while talk of trade wars between the U.S. and China do pose a risk, the local relationships in the region are still meaningful drivers of growth for MFG stock. The bank pays dividends twice annually, in August and in March, so now is a decent time to consider getting in line for that payout in a few months. What’s more, shares are up more than 45% in the past 12 months on hopes of an improving regional outlook in the new year.
PNC Financial Services Group Inc. (PNC)
Market value: $78 billion
Dividend yield: 3.2%
The largest U.S. regional bank by market value, PNC currently has more than $550 billion in total assets. That makes it halfway between a local finance firm and one of the leading and entrenched U.S. megabanks like JPMorgan. This gives it the best of both worlds. On one hand, it is not quite as connected to multinational trends as its larger peers and can sidestep some potential risks from any global trade war. On the other, it has massive scale and resources that make it a go-to provider for essential services like mortgages and small businesses loans. The result is a regional bank that punches above its weight and stands out as one of the best bank stocks to buy for the dividends.
Truist Financial Corp. (TFC)
Market value: $62 billion
Dividend yield: 4.6%
The regional bank formerly known as BB&T Corporation, Truist had previously been under pressure along with other regional banks in the wake of the 2023 Silicon Valley Bank collapse, which was the second-largest bank failure in U.S. history. However, the company has moved past threats of “contagion” and credit downgrades and has recently bounced back to levels not seen since before SVB went under. The stock is up about 40% from its 52-week lows, but more importantly still delivered a generous 52-cent dividend each quarter that is roughly half of its earnings. That means payouts are sustainable and perhaps even ripe for future increases in the year ahead.
U.S. Bancorp (USB)
Market value: $76 billion
Dividend yield: 3.9%
U.S. Bancorp was founded in 1863 and is headquartered in Minneapolis, serving much of the American Midwest with commercial, consumer and investment banking services. The bank just reported Q4 numbers in mid-January, outperforming Wall Street expectations on both earnings per share and revenue thanks to operational efficiency and balance sheet management. The company continues to share its success with stockholders, too. Back in September, the company bumped up its dividend to 50 cents a share – more than double the 24.5 cents per share it was paying at the beginning of 2015. This history of growth as well as a generous yield at present make USB one of the top U.S. bank stocks to buy for the dividends.