The banking or financial sector comprises companies that provide consumers with financial services. This includes retail banks, insurance companies, and investments services firms.
This sector has a great impact on the economy. The stronger it is, the stronger the economy becomes. But as the sector weakens, as evidenced by the events leading up to the Great Depression, the economy begins to trail. So, a healthy, stable economy requires a strong financial and banking sector.
Many of the stocks in this sector pay dividends, which many value investors believe is a good sign of a company’s quality. The longer the dividend history, the better it is for the investor, as it demonstrates a good track record of success. It also shows that the company has a history of providing investors with a share of the profits.
With the new government policy, Nigerian banking stocks are having their best quarter in six years, with a 34 per cent increase, outperforming emerging-market stocks. This is…
Source: Leadership Newspaper