In this article, we will take a look at the 13 Bank Stocks with Highest Dividends.
According to a CNBC report published on April 1, bank stocks have taken a hit in 2026, though there are signs that sentiment could start to shift. The S&P 500 Banking Sector has fallen more than 4% since the beginning of the year.
The report pointed to several pressures building at once. Cracks in the private credit market, rising adoption of artificial intelligence, and the US-Iran war all weighed on financial stocks through the first quarter. Asset managers began limiting redemptions in some private-credit funds. That raised concerns about the exposure of large banks that had lent into those areas. Investors started questioning how deep the risks might run. At the same time, bank shares faced another layer of uncertainty. There is growing concern that AI could disrupt the labor market as more roles become automated. Energy prices added to the pressure. The spike tied to tensions in the Middle East has made the economic outlook less clear and increased costs for consumers, especially at the pump.
In a separate report on April 6, JPMorgan Chase CEO Jamie Dimon called for a renewed commitment to American ideals as his bank deals with geopolitical uncertainty, a fragile economy, and the rapid rise of artificial intelligence. In his annual letter to shareholders, Dimon described geopolitical tensions as the biggest risk facing the bank. He pointed to the wars in Ukraine and Iran and their effect on commodities and global markets, describing war as “the realm of uncertainty.” He also highlighted several ongoing challenges, including global conflicts, persistent inflation, disruption in private markets, and what he referred to as “poor bank regulations.”
Given this, we will take a look at some of the best stocks with the highest dividends.
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Our Methodology:
For this list, we screened for banking stocks with dividend yields above 2%, as of April 7. Our list included both diversified and regional banks, giving readers broader exposure to the overall banking sector. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
13. JPMorgan Chase & Co. (NYSE:JPM)
Dividend Yield as of April 7: 2.03%
On April 6, Goldman Sachs raised the firm’s price recommendation on JPMorgan Chase & Co. (NYSE:JPM) to $365 from $352. It reiterated a Buy rating on the shares. The update came as part of a broader note previewing Q1 results for banks. The analyst said valuations across the group look more attractive after a 7% sell-off so far this year. That decline was entirely driven by multiple compressions, bringing valuations closer to historical levels. Goldman added that investors are likely to focus on several key areas. These include the outlook for net interest income, risks to capital markets revenue tied to the recent spike in volatility, and the impact of higher energy prices on credit quality and provisions.
On April 6, JPMorgan Chase CEO Jamie Dimon warned that the war in Iran could trigger oil and commodity price shocks. He said this could keep inflation elevated and push interest rates higher than the market currently expects. The warning came in his annual letter to shareholders. Dimon, 70, who has led JPMorgan for two decades, also said the private credit sector “probably” does not present a systemic risk, even as some investors pull back amid concerns that advances in AI may affect borrowers.
Dimon said the U.S. economy remains resilient. Consumers are still earning and spending, though he noted some recent softening. Businesses, in his view, remain in good shape. He also pointed out that growth has been supported by significant government deficit spending and earlier stimulus. At the same time, he said the need for increased infrastructure investment continues to rise.
JPMorgan Chase & Co. (NYSE:JPM) operates as a financial holding company. It provides investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management.
12. Citigroup Inc. (NYSE:C)
Dividend Yield as of April 7: 2.06%
On April 6, Goldman Sachs analyst Richard Ramsden raised the firm’s price target on Citigroup Inc. (NYSE:C) to $137 from $123, while keeping a Buy rating on the stock. The change came as part of a broader note looking ahead to Q1 results for the banking sector. He pointed out that valuations now look more appealing after a 7% drop earlier this year. That decline was driven entirely by multiple compressions, which have brought valuations back closer to their historical range.
Goldman also noted where investor attention is likely to land. The focus is expected to be on net interest income trends, potential pressure on capital markets revenue due to recent volatility, and how higher energy prices could affect credit quality and provisioning.
Citigroup Inc. (NYSE:C) is a global diversified financial services holding company that provides consumers, corporations, governments, and institutions with a broad range of financial products and services. Its core business activities include investment banking, retail banking, securities brokerage, transaction services, and wealth management.
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