Despite the unabating low-interest-rate environment, the financial sector has rebounded this year on a significant increase in financial transactions and capital market activities. This, coupled with the odds the Fed will raise interest rates in the near term, should keep driving the industry’s growth. So, we think it could be wise to add high-yield financial stocks Canadian Imperial (CM), Prudential Financial (NYSE:), and Huntington Bancshares (HBAN) to one’s watch list now because they have outperformed the S&P 500 so far this year. Continue reading.
Jerome Powell (Federal Reserve Chair) stated that on September 22, benchmark interest rates were set at zero. The central bank will also continue its current rate of asset purchases. The financial sector is still recovering due to increased capital market activity and financial transactions.

Positives include the Federal Reserve’s announcement that it will soon stop large-scale government-backed bond purchases and may raise interest rates for financial companies in 2022. These moves should increase financial company interest income. Globe Newswire reported that global financial services will increase at 9.9% annually to reach $22.5 trillion by 2022.

Due to their market dominance, Huntington Bancshares Incorporated, Prudential, (NYSE:) Financial, Inc., (PRU) and Huntington Bancshares Incorporated, (NASDAQ:), could make solid bets. Furthermore, these stocks have outperformed the S&P 500’s 18.5% gains year-to-date.

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