High Yield Dividend Stocks With Staying Power In Banking And Insurance

Dividend Fortresses can appeal to investors who want income that does not rely solely on guessing the next macro move. With energy markets, inflation trends, central bank decisions and trade tensions all pulling markets in different directions, a 5%+ dividend yield from companies that aim to keep paying through different cycles can be attractive. This screener focuses on stocks that combine higher yields with a focus on resilience rather than speculation. In this article, three of the candidates from the Dividend Fortresses list are highlighted to help you stress test and potentially strengthen your own income portfolio.

Halyk Bank of Kazakhstan (LSE:HSBK)

Overview: Halyk Bank of Kazakhstan is a universal bank that serves corporate, SME and retail clients across Kazakhstan and neighbouring markets, offering everything from current accounts and cards to mortgages, business loans, trade finance and investment products. It also provides digital banking, custody, treasury and gold investment services, supported by a long operating history and a controlling shareholder.

Operations: Halyk Bank of Kazakhstan generates most of its revenue from Corporate Banking at KZT 751.4b, followed by Investment Banking at KZT 329.7b, SME Banking at KZT 194.1b, Retail Banking at KZT 154.1b and Unallocated items at KZT 378.0b.

Market Cap: US$8.6b

Halyk Bank of Kazakhstan stands out in the Dividend Fortresses list because it combines a low P/E multiple with high profitability metrics such as a 27.2% return on equity and net profit margins above 50%, yet it still trades at a steep discount to some fair value estimates. The bank benefits from strong market positions in loans and deposits and has been investing heavily in digital platforms, which are seeing solid user and transaction growth. At the same time, a high level of bad loans and relatively low coverage, along with an unstable dividend record, mean income investors need to look closely at credit quality and payout reliability. The interaction between discounted valuation, franchise strength and these risk flags is where the real story starts.

Halyk Bank of Kazakhstan’s low P/E and high profitability metrics suggest that the market may be overlooking some aspects of the company, so explore the 4 key rewards and 3 important warning signs in the 4 key rewards and 3 important warning signs

Admiral Group (LSE:ADM)

Overview: Admiral Group is a Cardiff based financial services company that focuses on motor and household insurance, as well as personal lending products, serving customers across the UK, France, Italy and Spain under brands such as Admiral, More Than, ConTe.it and L’olivier.

Operations: Admiral Group generates most of its revenue from UK Insurance at £4.5b, with European Insurance contributing £656.7m, Other activities £87.5m, Admiral Money £25.8m and Unallocated Investment and Interest Income £17.7m.

Market Cap: £10.9b

Admiral Group may be of interest to investors who are focused on higher dividend payers closely linked to the motor insurance pricing cycle. The company combines a 5.7% dividend yield, very high return on equity and a reputation for disciplined underwriting, supported by investment in data, machine learning and generative AI to manage costs and support pricing. At the same time, questions around earnings quality, reliance on external borrowing and expectations for replicating UK margins in Europe mean the investment case has notable risks as well as strengths. The balance between these fundamentals, technology driven efficiency, and funding and earnings quality risks is a central consideration for investors.

Admiral Group’s high yield and strong returns look impressive, but the real story sits in how those dividends interact with capital needs, leverage and earnings quality, which the 3 key rewards and 2 important warning signs (1 is major!) examines in more detail.

Foresight Group Holdings (LSE:FSG)

Overview: Foresight Group Holdings is a London based asset manager that runs infrastructure, private equity, venture capital and listed funds, with a focus on renewable energy, social and digital infrastructure, and providing growth capital and buyout funding to smaller companies across the UK, Europe and Australia.

Operations: Foresight Group Holdings generates most of its revenue from Real Assets at £114.8m, with Private Equity contributing £50.1m. The majority of revenue comes from the United Kingdom (£126.4m) and Australia (£25.7m), with smaller contributions from Luxembourg and other European markets.

Market Cap: £525.3m

Foresight Group Holdings appears in the Dividend Fortresses list because it combines fee based exposure to infrastructure and private equity with forecast earnings growth, a reported 27.7% net margin and a valuation that some analysts and DCF work suggest is below fair value. The company is pushing into higher fee products, expanding AUM from a position of low market share in its core regions and using share buybacks that currently retire more stock than is issued. These factors can support earnings per share and dividend capacity. On the other hand, the funding model relies entirely on external borrowing and there is a heavy tilt to UK and European renewables policy. As a result, the balance between forecast ROE, changes in sales from £164.9m and these structural risks is important for income focused investors to understand.

Foresight Group Holdings’ mix of fee based infrastructure exposure, its reported 27.7% net margin and ongoing buybacks suggests the earnings story might be only half told. See how the analyst forecasts for Foresight Group Holdings could shift once one crucial assumption is tested.

The three Dividend Fortresses in this article are just the starting point, as the full screener surfaced 2 more companies with equally compelling income narratives and different ways of balancing yield with resilience, all captured in the Dividend Fortresses screener. Identify and analyze the specific catalysts, risk flags, and dividend support factors that matter most to you so you can focus on the highest conviction opportunities rather than broad market noise.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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