{"id":30756,"date":"2023-07-03T09:23:48","date_gmt":"2023-07-03T13:23:48","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/morgan-stanley-the-better-financial-dividend-stock-nysems\/"},"modified":"2023-07-03T09:23:51","modified_gmt":"2023-07-03T13:23:51","slug":"morgan-stanley-the-better-financial-dividend-stock-nysems","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=30756","title":{"rendered":"Morgan Stanley: The Better Financial Dividend Stock (NYSE:MS)"},"content":{"rendered":"
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Introduction<\/h2>\n

Ever since Silicon Valley Bank went bust, I have written a number of articles on what I believe to be attractive and undervalued banking stocks. Most of them were regional banks.<\/p>\n

While it’s fun to buy undervalued regional banks, they have one major disadvantage: they tend to sell off violently whenever the economy takes a beating.<\/span><\/p>\n

Hence, they are great buys during severe stock price declines but not great for consistent wealth compounding.<\/p>\n

That’s where Morgan Stanley (NYSE:MS<\/span>)<\/strong> comes in. This investment banking powerhouse comes with a juicy 3.6% dividend yield, a business model that’s not as dependent on lending as regional banks, and a track record of consistent outperformance with ambitious growth plans.<\/p>\n

In this article, we’ll discuss all of this and more!<\/p>\n

Consistent Outperformance Thanks To A Great Business Model<\/h2>\n

I have never covered Morgan Stanley on Seeking Alpha – or anywhere else.<\/span><\/p>\n

However, I have used its research, and I do like the output of its economists and market experts. I’m not paid to say this (I wish – just kidding), but I believe that MS has some of the best institutional research on Wall Street.<\/p>\n

Before discussing any numbers, we see that MS shares have outperformed the Financial Select Sector SPDR ETF (XLF) by a wide margin over the past ten years – including reinvested dividends. MS has a 2.4% weighting in this ETF.<\/p>\n

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Data by YCharts<\/figcaption><\/figure>\n

One reason for the outperformance is less dependence on loans.<\/p>\n

Morgan Stanley is an investment bank with a history that goes back to 1924.<\/p>\n

Operating as a financial holding company, the company provides a wide range of services, including advising, originating, trading, managing, and distributing capital for governments, institutions, and individuals.<\/p>\n

In addition to its headquarters in New York City, the company has regional offices in the US and principal offices in London, Tokyo, Hong Kong, and other major financial centers.<\/p>\n

The company has three key business segments:<\/p>\n