01/08/2015 7:00 am EST
I think the financial sector will do better in 2015. Slightly higher interest rates should help net interest income. US economic strength should spur loan demand, suggests dividend reinvestment expert Chuck Carlson, editor of DRIP Investor.
And the contentious relationship between large banks and politicians and regulators should improve with a change in Congress.
One stock in the sector that is especially interesting to me is Regions Financial (RF), our top conservative idea for the coming year.
The company, with a strong presence in the Southeast, has gone through some tough times but is seeing improvement in its business. I think the company will continue to improve in 2015.
Also, the firm has been repairing its dividend and I think another hike should occur in 2015.
Yielding 2%, the stock offers a nice play for more aggressive investors. I think a move to $12-$13 is possible.
Please note anyone can buy Regions Financial directly, the first share and every share, via the company's direct-purchase plan.