13 Bank Stocks with Highest Dividends

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.

pcruciatti / Shutterstock.com

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.

11. Wells Fargo & Company (NYSE:WFC)

Dividend Yield as of April 7: 2.22%

On April 7, JPMorgan lowered its price recommendation on Wells Fargo & Company (NYSE:WFC) to $91 from $99.50. It reiterated a Neutral rating on the shares. The revision came as part of a broader Q1 preview for large-cap banks. The analyst said Q1 results “should be good,” supported by strong market revenue. At the same time, investment banking activity has slowed in recent weeks, reflecting market volatility tied to the war. JPMorgan also expects large bank stocks to “remain choppy” in the near term.

On April 1, Bloomberg reported that after being released from a US asset cap, Wells Fargo moved quickly to use its excess capacity. The bank directed more than $200 billion into the repo market. This came at a time when the financial system needed a large participant, making the timing favorable for both the bank and the broader market. Its increased activity helped ease pressure in the more than $12 trillion repo market, which plays a key role in linking money-market funds, dealers, and US Treasuries.

Regulators, including the Federal Reserve, had already been looking at ways to strengthen this market. Wells Fargo’s expansion added liquidity and improved stability. The bank’s presence in this space has grown quickly. Its primary-dealer assets increased at a faster pace than larger peers such as JPMorgan Chase & Co., Citigroup Inc., and Bank of America Corp., though from a smaller base. It is now one of the top counterparties for US money-market funds and has expanded its secured-financing operations. Overall, the move has supported the smooth functioning of the repo market, which remains a critical part of the financial system. By adding liquidity, the bank has helped reduce the risk of disruptions that could spread across markets.

Wells Fargo & Company (NYSE:WFC) operates as a financial services firm. It offers a broad range of banking, investment, and mortgage products, along with consumer and commercial finance services for individuals, businesses, and institutions.

10. Bank of America Corporation (NYSE:BAC)

Dividend Yield as of April 7: 2.24%

On April 7, JPMorgan analyst Vivek Juneja lowered the firm’s price recommendation on Bank of America Corporation (NYSE:BAC) to $57.50 from $61.50. It maintained an Overweight rating on the shares. The change came as part of a broader Q1 preview for large-cap banks. He noted that Q1 results “should be good,” supported by strong market revenue. At the same time, investment banking activity has slowed in recent weeks, reflecting market volatility linked to the war.JPMorgan also expects large bank stocks to “remain choppy” in the near term.

On the same day, UBS lowered its price goal on Bank of America to $62 from $67 and maintained a Buy rating. The revision was part of its Q1 preview for large-cap banks and consumer finance companies. The firm said that even after reducing its expected rate cuts for 2026 from two to one, its estimates for 2026 and 2027 remain largely unchanged.UBS added that the selloff in the sector so far this year “could unearth some opportunities, especially given strong momentum” in areas such as direct lending, capital markets, and deregulation.

Bank of America Corporation (NYSE:BAC) operates as both a bank holding company and a financial holding company. Its business is organized across Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.

9. SouthState Bank Corporation (NYSE:SSB)

Dividend Yield as of April 7: 2.55%

On April 1, JPMorgan lowered its price recommendation on SouthState Bank Corporation (NYSE:SSB) to $110 from $120. It reiterated an Overweight rating on the shares. The adjustment came ahead of Q1 results for small- and mid-cap banks. The firm reduced its year-end 2026 price targets for the group by about 10% on average. This reflected the ongoing Iran conflict and a backdrop where no rate cuts are currently priced in for this year based on the forward curve.

During the Q4 2025 earnings call, CEO and Director John Corbett said that, excluding merger-related costs, the company delivered strong performance in 2025. He stated that earnings per share increased by more than 30%, while tangible book value per share grew at a double-digit pace. He also noted that the company raised its dividend by 11% and continued with share repurchases. Loans and deposits, he added, grew by 8% during the quarter.

The company repurchased 2 million shares in Q4. Its Board also approved a new authorization to buy back an additional 5.56 million shares. Corbett explained that the bank was looking to take advantage of what it sees as a gap between its underlying performance and its market valuation. He indicated that the buybacks were meant to capitalize on that disconnect.

SouthState Bank Corporation (NYSE:SSB) operates as a financial services company through its nationally chartered subsidiary, SouthState Bank, N.A. The bank provides consumer, commercial, mortgage, and wealth management services across Florida, Texas, the Carolinas, Georgia, Colorado, Alabama, Virginia, and Tennessee.

8. UBS Group AG (NYSE:UBS)

Dividend Yield as of April 7: 2.81%

On April 7, RBC Capital lowered its price recommendation on UBS Group AG (NYSE:UBS) to CHF 37 from CHF 38. It reiterated an Outperform rating on the shares ahead of its Q1 results. The analyst said the firm is adjusting its model to reflect lower assets under management for UBS, as outlined in a research note.

On March 20, Reuters reported that UBS secured a national banking licence in the United States. The Swiss bank said the approval marks a step forward in its effort to expand its wealth management business in the world’s largest economy.UBS confirmed that its application for a national bank charter had been approved by the Office of the Comptroller of the Currency. The move comes as the bank works through stricter regulatory requirements in Switzerland.

The bank had applied to convert UBS Bank USA into a nationally chartered institution. This change will allow it to offer a full range of services similar to US banks, including checking accounts, savings accounts, and mortgages. Brian Carlin, head of global wealth management US, said the charter would help expand both the client base and the services offered, though he noted the process will take time.

UBS Group AG (NYSE:UBS) is a Switzerland-based holding company that operates through UBS AG and its subsidiaries. It focuses on wealth management, supported by asset management and investment banking, and runs a capital-light, cash-generative business model.

7. The PNC Financial Services Group, Inc. (NYSE:PNC)

Dividend Yield as of April 7: 3.19%

On April 6, Goldman Sachs raised its price recommendation on The PNC Financial Services Group, Inc. (NYSE:PNC) to $220 from $215. It maintained a Neutral 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 appealing after a 7% decline so far this year. That drop was driven entirely by multiple compressions, which brings valuations closer to historical levels. Goldman further added that investors are likely to focus on a few main areas. These include the outlook for net interest income, pressure on capital markets revenue from recent volatility, and how higher energy prices could affect credit quality and provisions.

On April 2, the company’s board of directors declared a quarterly cash dividend of $1.70 per share on its common stock. The dividend is set to be paid on May 5 to shareholders of record as of the close of business on April 14. The board also approved cash dividends for holders of several series of preferred stock. These will be paid to shareholders of record as of the respective record dates.

The PNC Financial Services Group, Inc. (NYSE:PNC) operates as a diversified financial services company in the United States. It provides retail and business banking, a full range of lending products, and specialized services for corporations and government entities. Its offerings also include wealth management and asset management.

6. Fifth Third Bancorp (NASDAQ:FITB)

Dividend Yield as of April 7: 3.37%

On April 7, BofA lowered its price recommendation on Fifth Third Bancorp (NASDAQ:FITB) to $58 from $60. It kept a Buy rating on the shares. The firm reduced price targets across its regional bank coverage by about 3% on average, pointing to lower valuation multiples, higher uncertainty around earnings per share, and a rising cost of equity.

On the same day, Goldman Sachs reinstated coverage of Fifth Third with a Buy rating and a $55 price target, implying about 16% upside. The firm said the bank is positioned to deliver a 19% return on tangible common equity while also achieving “peer-leading” balance sheet growth.

During the Q4 2025 earnings call, Chairman Timothy N. Spence Preston indicated that full-year net interest income is expected to be in the range of $8.6 billion to $8.8 billion. He also said adjusted noninterest income for the year is projected to fall between $4 billion and $4.4 billion. Preston added that full-year noninterest expenses are expected to come in between $7 billion and $7.3 billion. This outlook excludes the impact of expected CDI amortization and about $1.3 billion in estimated acquisition-related charges. He noted that the guidance includes the realization of 37.5% of the $850 million in annualized run-rate expense synergies expected in 2026.

He further explained that the company’s projections suggest adjusted revenue and adjusted PPNR, excluding CDI amortization, would increase by 40% to 45% compared to 2025. The outlook also includes an additional 100 to 200 basis points of positive operating leverage. The company expects net charge-offs to range between 30 and 40 basis points in 2026, including the impact of Comerica’s loan portfolio. Preston said that after closing the Comerica acquisition, the CET1 capital ratio is expected to remain close to the company’s 10.5% target.

Fifth Third Bancorp (NASDAQ:FITB) operates as a diversified financial services company and serves as the indirect holding company of Fifth Third Bank, National Association. Its Commercial Banking segment provides credit intermediation, cash management, and financial services to large and middle-market businesses, as well as government and professional clients.

Click to continue reading and see the 5 Bank Stocks with Highest Dividends.

Disclosure: None. Follow Insider Monkey on Google News.