Best Savings Stocks for 2022
Thrift institutions are lending again and their stock prices have reflected the renewed confidence. The best savings stocks for 2022 are those that will benefit from this positive outlook. These lenders are mostly local operators, usually focused on small businesses and consumers in their communities. Their owners are usually the local community or a not-for-profit organization that has specific charitable objectives with respect to their investment strategy; reinvest profits in the services they provide and avoid paying dividends as much as possible. This limits potential earnings growth, but makes it a safer bet in an uncertain market. Here is our list of the best thrift stores shares to buy for 2022 and beyond.
Synchrony Financial is a great savings stock to buy. The company is a well-known provider of private label credit card services. A major customer is retail giant Walmart, where customers earn points for discounts on merchandise. The company’s other clients include Amazon, Lowe’s and Home Depot. Synchrony also issued a credit card to members of the Amazon Prime loyalty program. In recent years, Synchrony has diversified its business model to prepare for the potential effects of a downturn in the retail industry. It expanded its installment loan portfolio and increased its presence in the small business credit market.
Bank of the First Republic
First Republic is another great thrift stock to buy. This bank specializes in wealth management for wealthy individuals and families. Its clients tend to have large discretionary incomes and a higher savings rate than the general population. First Republic aims to position itself as a financial advisor to its clients, helping them plan for retirement, save for children’s education and protect against risk. It has a strong brand, focused on customer service and a background in cybersecurity. First Republic has a long history of socially responsible lending policies, including a general aversion to investing in tobacco, firearms, and fossil fuel companies. It also has a policy of not investing in highly leveraged companies.
Capital One Financial is a highly diversified financial services company that serves a wide range of customers, from young adults to seniors. It operates across multiple channels, including credit cards and loans, bank deposits, and online/mobile banking. Capital One has a strong presence in the credit card market, with one of the most recognizable brands thanks to its “What’s in Your Wallet?” advertising campaign. The company also offers auto loans, mortgages and investment products. Capital One has recently focused on growing its small business lending segment, helping growing businesses in an industry that has otherwise seen a decline in lending.
MUFG Union Bank
MUFG Union Bank is a subsidiary of the Japanese bank MUFG. It is one of the largest savings institutions in the world, with a presence in more than 30 states and territories in the United States and $95 billion in assets under management. MUFG Union Bank specializes in lending to small and medium enterprises. It has a strong presence in California, New York and Texas and has partnered with local businesses to provide financing while helping them with tax, accounting and marketing services. Union Bank is a member of the New York Clearing House, a step toward full membership in the Federal Reserve System. Authorities pre-approved its candidacy in 2015, but the bank has yet to apply for full membership. Achieving this status would significantly reduce its costs and boost its credibility, making it a great savings stock to buy.
American Express is a household name, but it is also a savings institution, although it has changed its business model to become a bank. The company was founded in 1850 as a cross-border service provider, moving funds between countries through letters of credit. American Express has since become a major credit card provider and a leading provider of travel and rewards cards. It has also expanded its services to include small business and consumer loans. AmEx has a history of responsible business practices and a reputation for providing high quality customer service. It has great brand recognition, a large customer base, and access to capital, making it a great savings stock to buy.
Discover financial services
Discover Financial Services is a diversified financial services provider that serves a wide range of customers, from those looking for credit cards to those looking for a mortgage. It also provides payment processing and other services to retailers, including gift cards, payroll and other payment systems. Discover owns a number of popular credit card brands, including Discover, Discover Student, and the eponymous Diners Club. It is also well known for its cashback program, where customers receive a certain percentage of the amount spent each time. The company has a solid reputation for responsible lending practices, but it faces growing criticism for allegedly high default rates. Discover also recently came under fire for a change in its cashback policy.
At the end of the line
The best savings stocks for 2022 and beyond are those that have demonstrated a commitment to responsible business practices. This includes minimizing the risk of default and providing customers with a high level of customer service. But while they may be interesting for customers, they are not necessarily so for investors. Thrift institutions tend to be locally concentrated, which means that their profits are not widely distributed in the form of dividends. This limits potential gains, making these stocks less attractive to investors looking for high yields. Still, the best savings stocks should be relatively safe investments in an unpredictable market with a lot of uncertainty.