15 Best Bank Stocks to Buy According to Billionaires

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1. Capital One Financial Corporation (NYSE:COF)

Number of Billionaire Investors: 22

Capital One Financial Corporation (NYSE:COF) is a financial services company that offers multiple banking products including checking and savings accounts, credit cards, auto loans, and commercial lending. On February 18, Capital One announced that it is moving forward with its acquisition of Discover Financial Services after shareholders from both companies voted overwhelmingly in favor of the deal. The deal is expected to close in early 2025, pending regulatory approval. COF holds the top spot on our list of the best bank stocks, since it is the preferred pick of billionaire investors.

On February 7, Capital One Financial Corporation (NYSE:COF) announced a quarterly dividend of $0.60 per share, which was paid on March 3. The company has distributed dividends every quarter since it became a separate entity on February 28, 1995.

Capital One Financial Corporation (NYSE:COF) closed the fourth quarter of 2024 with a net income of $1.1 billion and a full-year profit of $4.8 billion. Adjusted for Discover integration costs and legal reserves, earnings per share came to $3.09 for the quarter and $13.96 for the year. The company also contributed $100 million to philanthropy during the quarter. However, liquidity reserves dropped by $8 billion to $124 billion, with cash holdings decreasing to $43 billion, largely because of seasonal increases in card loans and funding maturities. Despite this, consumer banking deposits continued to grow. The company upheld a solid liquidity coverage ratio of 155%, though loan growth, dividend payments, and $150 million in share repurchases offset its net income.

Overall, Capital One Financial Corporation (NYSE:COF) ranks first on our list of the best bank stocks to buy according to billionaires. While we acknowledge the potential of COF to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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