This is an off-the-radar idea in financial services that could be a big winner in a rising interest rate environment. Webster Financial Corp. (NYSE: WBS) operates as the bank holding company for Webster Bank National Association, which provides a range of banking, investment and financial services to individuals, families and businesses in the United States.
The Commercial Banking segment provides lending, deposit and cash management services; commercial and industrial lending and leasing, commercial real estate lending, equipment financing and asset-based lending, as well as treasury and payment services; wealth management solutions to business owners, operators and consumers; and trust, asset management, financial planning, insurance, retirement and investment products.
The Retail Banking segment provides deposit and fee-based services, residential mortgages, home equity lines, secured and unsecured loans, and credit cards to consumers. The company also offers online and mobile banking services. As of December 31, 2021, it operated 130 banking centers and 251 ATMs.
Its HSA Bank segment offers health savings accounts, health reimbursement arrangements, flexible spending accounts and commuter services that are distributed directly to employers and individual consumers, as well as through national and regional insurance carriers, consultants and financial advisors.
Investors receive a 2.78% dividend. The Webster Financial stock price target at Jefferies is $73. The slightly lower $72.10 consensus target also compares to Wednesday’s close at $57.18.
These five top picks at Jefferies, while perhaps not the most exciting companies on Wall Street, offer dependable dividends and have safe and reliable business models that work well in times of economic stress. These stocks make sense for growth and income investors looking to shift to a safer profile for the rest of what could be a very turbulent year.