When tech stocks are flying high, it can be easy to forget about the steady, dividend-paying stocks that often stabilize a portfolio.

But a dividend stock doesn't have to be boring. Many dividend-paying stocks are currently enjoying strong upward momentum, especially a select few in the financial sector.

The five stocks we'll be looking at today all fit several key characteristics: each is a prominent name in the banking sector with a market cap of at least $5 billion. Each stock also yields a 2% dividend with a dividend payout ratio (DPR) under 50, and a minimum Benzinga Edge Momentum Score of 80.

Here are five high-momentum bank stocks with juicy dividends.

The Toronto Dominion Bank

Benzinga Edge Momentum Score: 87.19

TD (NYSE:TD) is one of Canada's largest banks with a $180 billion market cap and more than $62 billion in revenue over the last 12 months. The bank reported a healthy top- and bottom-line earnings beat in its February report for fiscal Q1 2026, but the 45% jump in quarterly profit is what really captured investors' attention. Capital markets trading revenue continued its strong growth, and the 14.2% ROE exceeded the 13% target. TD's dividend also now yields 2.8% with a 34% DPR, and it has raised annual payouts for 12 consecutive years.

TD has an upcoming earnings catalyst on May 28th, and investors will be looking for hints that the growth story can continue. But according to the technical trends, the growth story is just getting started. The stock has strong support along the 50-day moving average, which has been above the 200-day moving average since April 2025. TD shares reached overbought territory during a 13-for-14-day winning streak, but the Relative Strength Index (RSI) is now back below 70, and the stock is still reaching new all-time highs. 

Morgan Stanley

Benzinga Edge Momentum Score: 81.33

Morgan Stanley (NYSE:MS) has one of the better fundamental setups in this bunch, boosted by record Q1 revenue. The $300 billion asset management giant reported $20.6 billion in Q1 sales, a 16% year-over-year (YoY) increase. EPS of $3.43 also smashed the expected $3.00, marking YoY growth of more than 32%. The company added $118 billion worth of new assets in the Wealth Management segment, and Institutional Securities revenue (i.e., trading) surpassed $10.7 billion. The stock still trades below the industry average of 16 times forward earnings, and its 35.5% payout ratio supports a 2.1% dividend yield.

Morgan Stanley reported its Q1 earnings on April 15 (because bankers apparently have a sense of humor), and the stock jumped 4.5% that day. But the breakout began in March when downward momentum was reversed at the 200-day moving average, and the stock quickly retook the 50-day moving average in early April. Shares are now trading at new all-time highs, and the RSI remains under 70, giving this rally more room to breathe.

State Street Corp.

Benzinga Edge Momentum Score: 86.35

State Street (NYSE:STT) is the $42 billion company responsible for some of the market's most popular trading vehicles, and it debuted the SDPR S&P 500 ETF (NYSE:SPY) more than 30 years ago. The company offers a mix of investment management, research, and trading services, and its Q1 2026 earnings last month showed strong revenue growth (up 15% YoY), prompting management to raise its Q2 guidance. Despite the revenue boost and 20% gain over the last three months, the stock still trades at just 15 times earnings, below the industry average of 25. The dividend yields 2.2% with a 33% payout ratio, and the company has a 13-year track record of annual payout increases.

STT shares broke out with the rest of the market in the first week of April, rising above the 50-day moving average and triggering bullish RSI signals. The stock's outsized April gain sent the RSI into overbought territory, but now the price is consolidating around the $150 level, giving the RSI space to get back under 70.  

Canadian Imperial Bank of Commerce

Benzinga Edge Momentum Score: 87.55

The Canadian banking sector has been a top performer over the last 12 months, and the Canadian Imperial Bank of Commerce (NYSE:CM) is giving investors plenty of reasons to be happy lately. The stock ticked a new all-time high this week amid a wave of bullish fundamental and technical momentum, driven by its 14% upside EPS surprise on fiscal Q1 2026 results reported on February 26. The company reports fiscal Q2 numbers on May 28th before the market opens.

CM shares pay a 2.65% dividend yield, with a payout ratio of 41%, which is on the high side for the banking sector but not enough to raise any red flags (especially for a bank sitting on $92 billion in cash). The technical signals are also strong, with healthy support along the 50-day moving average. The Moving Average Convergence Divergence (MACD) indicator also hints at more upward momentum as it heads for a bullish crossover.

Victory Capital Holdings Inc.

Benzinga Edge Momentum Score: 80.65

Victory Capital Holdings (NASDAQ:VCTR) is the smallest financial stock on our list with a $5.15 billion market cap and $1.48 billion in revenue over the last year. However, investors have plenty of reasons to think big following its acquisition of Pioneer Investments, which is now almost completely integrated. The company's Q1 2026 earnings report was an eye-opener: revenue soared more than 76% YoY, and the $1.82 EPS figure represented growth of more than 30% from the same period last year. And it even pays a dividend yielding 2.34% annually, with a 44% payout ratio.

The stock's breakout started long before the May 6th earnings news had hit the markets. Shares broke above the 200-day and 50-day moving averages in quick succession back in early April, which boosted the RSI into bullish territory over 50. Now that the rally has stalled, this could offer a new entry point for investors, with the RSI finally back under 70 for the first time in two weeks.