Bank stocks might seem a bit dull at first glance, but they can actually be a solid cornerstone for your diversified portfolio. That's because many of them provide investors with stability and income through dividends. They can also help investors navigate the ever-changing interest rate environment if you play your cards right.

Bank stocks could benefit from strong tailwinds as we head into 2026, including falling short-term interest rates, which tend to bode well for banks. Not only that, the investment banking sector has benefited from a significant rebound, and powerful tailwinds are expected to continue well into next year.

If you're looking for diversification and want to capitalize on these trends, here are three bank stocks to buy before the year is over.

A top bank with a fort

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