Dan Moskowitz: Top 10 Financial Stocks for 2015

Bank of America is a battle ground for investors. The bullish and bearish sentiments are extreme. Bank of America might have some trouble in the future due to long-held foreclosures and subsequent write-offs. On the other hand, you have to like Bank of America’s new approach of a greater focus on operational efficiency and profitability as opposed to growth. Of course, this will limit upside potential, but it also makes the bank more resilient to downside market moves

Fifth Third Bancorp makes this list because of its conservative lending practices, which should make it more resilient than most of its peers. Despite the conservative approach, net income decline of 19% year over year in FY2014, but Fifth Third is seeing growth in corporate banking, payment processing, and investment advisory revenue. Furthermore, FY2014 demand deposits increased 7%. Fifth Third also reduced its share count by 4% last year. Fifth Third would have a Tier 1 Capital Ratio of 7.9% during the worst of times. It currently yields 2.70%.

Goldman Sachs has plenty of sway. That’s the primary reason it makes this list. There is a reason it managed to survive the previous crisis. The best way to play Goldman Sachs might be to put it on your watchlist. If it flies, let it go. If it gets trounced, buy at discounted prices. Goldman Sachs currently yields 1.30%.

U.S. Bancorp has been the most conservative of the big banks. That’s a major positive during challenging economic times. According to the Federal Reserve, its minimum Capital Ratio is 8.5%. USB currently yields 2.20%.

BNY Mellon makes this list for two simple reasons: A minimum Tier 1 Capital Ratio of 12.6% and a dividend yield of 1.70%. The latter isn’t that generous, but the combination of the two is impressive, as it indicates a safe dividend.

Citigroup. When you combine Citigroup Inc.'s (C) strategic divestitures and a Minimum Tier 1 Capital Ratio of 8.2%, you have the likelihood of hiked dividends and/or the initiation of share buybacks. That could be a nice combination and should be watched. Citigroup currently yields 0.10%.

Visa being dropped as the sole credit card accepted at Costco Wholesale Corp. (COST) stores in the U.S. is Visa Inc.'s (V) gain, giving it access to more high-end consumers. Visa already has twice the purchase volume of American Express, and that spread is likely to expand. Visa’s stock recently hit an all-time high. Contrary to popular belief, this is a bullish indicator (barring a market correct or crash). Visa currently yields 0.70%.

Wells Fargo has long been one of the safest financial stocks available. Its Minimum Tier 1 Capital Ratio of 7.5% is decent, but based on history alone, Wells Fargo should be capable of weathering almost any economic storm. A 2.50% yield doesn’t hurt, either.

JPMorgan Chase is similar to Wells Fargo in some respects. A Minimum Tier 1 Capital Ratio of 6.5% is far from spectacular, but a history of finding a way through massive headwinds and a 2.60% yield make it an option to consider.

Deutsche Bank, according to the Federal Reserve, Deutsche Bank AG (DB) ranks #1 of 31 banks in regards to being able to withstand economic malaise. It has a Minimum Tier 1 Capital Ratio of 34.7%. It yields 3.00%. An intriguing combination.