Diversify Your Finance Holdings

Article Excerpt

Top-quality bank stocks are a sound addition to the Finance sector of most portfolios. However, you should also diversify your holdings with high-quality non-bank stocks such as these two. H&R BLOCK INC. $19 (New York symbol HRB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 325.0 million; Market cap: $6.2 billion; WSSF Rating: Above average) prepares income tax returns through offices in the United States, Canada, Australia and the UK. Other services include investment planning and insurance. In December 2007, the company canceled a deal to sell its Option One mortgage business due to the problems in the mortgage securities market and slumping home prices. Instead, H&R Block will now wind down its mortgage operations. While competition from do-it-yourself software programs have hurt demand for H&R Block’s tax services in the past few years, increasingly complex tax rules should help it attract new clients. The company’s own TaxCut software has also helped it take advantage of growing interest in electronic filing. Washington’s new stimulus…