5 Best Bank Dividend Stocks to Buy Now

In this article, we discuss 5 best bank dividend stocks to buy now. If you want to read our detailed analysis of the banking sector and its outlook, go directly to read 12 Best Bank Dividend Stocks to Buy Now.

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

Dividend Yield as of October 31: 3.69%

The PNC Financial Services Group, Inc. (NYSE:PNC) is an American bank holding company and financial services corporation. The company is one of the best dividend stocks to buy as it has been paying dividends to shareholders consistently for the past 30 years, compared with a sector median of 13 years. Moreover, the company has raised its payouts for 12 years in a row. Currently, it pays a quarterly dividend of $1.50 per share and has a dividend yield of 3.69%, as of October 31.

In Q3 2022, The PNC Financial Services Group, Inc. (NYSE:PNC) reported revenue of $5.55 billion, up 6.7% from the same period last year. The company returned $1.7 billion to shareholders during the quarter, $600 million of which represented dividend payments.

In October, JPMorgan maintained an Overweight rating on The PNC Financial Services Group, Inc. (NYSE:PNC) with a $171.50 price target, highlighting the company’s strong fundamentals in a rising interest rate period.

At the end of Q2 2022, 42 hedge funds tracked by Insider Monkey reported owning stakes in The PNC Financial Services Group, Inc. (NYSE:PNC), compared with 49 in the previous quarter. These stakes have a total value of roughly $593 million. D E Shaw was the company’s leading stakeholder in Q2.

4. First Hawaiian, Inc. (NASDAQ:FHB)

Dividend Yield as of October 31: 4.04%

First Hawaiian, Inc. (NASDAQ:FHB) is a Hawaii-based bank holding company and one of the country’s largest financial institutions. In Q3 2022, the company reported revenue of $208.6 million, which showed a 14.2% growth from the same period last year. Its net income for the quarter came in at $69 million.

Though First Hawaiian, Inc. (NASDAQ:FHB) hasn’t raised its dividends since 2018, the company paid regular dividends to shareholders throughout this period. It currently pays a quarterly dividend of $0.26 per share and has a dividend yield of 4.04%, as of October 31. Its dividend payout ratio of 48% makes it one of the best dividend stocks on our list.

At the end of Q2 2022, 17 hedge funds tracked by Insider Monkey owned stakes in First Hawaiian, Inc. (NASDAQ:FHB), up from 15 in the previous quarter. These stakes have a consolidated value of over $92.8 million. Yacktman Asset Management owned the largest stake in the company in Q2.

3. Citizens Financial Group, Inc. (NYSE:CFG)

Dividend Yield as of October 31: 4.09%

An American bank holding company, Citizens Financial Group, Inc. (NYSE:CFG) has raised its dividends at a CAGR of 20.41% in the last five years. The company pays a quarterly dividend of $0.42 per share and has a dividend yield of 4.09%, as recorded on October 31.

In its recently announced Q3 2022 earnings, Citizens Financial Group, Inc. (NYSE:CFG) posted revenue of $2.17 billion, up 31.5% from the same period last year. The company’s average loans and average deposits were up 2% and 1% from the previous quarter, respectively.

Morgan Stanley reiterated its Overweight rating on Citizens Financial Group, Inc. (NYSE:CFG) in October with a $48 price target, appreciating the company’s consistent loan growth and strong fundamentals.

The number of hedge funds tracked by Insider Monkey owning stakes in Citizens Financial Group, Inc. (NYSE:CFG) grew to 43 in Q2 2022, from 41 in the previous quarter. These stakes have a collective value of over $525.2 million.

2. Citigroup Inc. (NYSE:C)

Dividend Yield as of October 31: 4.42%

Citigroup Inc. (NYSE:C) is a New York-based multinational investment banking company that provides related financial services to its consumers. The company is one of the best dividend stocks on our list as it has raised its dividends at a CAGR of 20.59% in the last five years. It currently pays a quarterly dividend of $0.51 per share and has a dividend yield of 4.42%, as of October 31.

In Q3 2022, Citigroup Inc. (NYSE:C) generated over $9 billion in free cash flow, which was enough to support its dividend payments worth over $1 billion. The company has a safe payout ratio of 29%, which further signals dividend growth.

BMO Capital maintained an Outperform rating on Citigroup Inc. (NYSE:C) in October with a $71 price target, highlighting the company’s strong performance across Services and Branded Cards.

As of the close of Q2 2022, 82 hedge funds tracked by Insider Monkey owned stakes in Citigroup Inc. (NYSE:C), down from 88 in the previous quarter. These stakes have a consolidated value of over $7.4 billion. Among these hedge funds, Berkshire Hathaway was the company’s leading stakeholder in Q2.

Diamond Hill Capital mentioned Citigroup Inc. (NYSE:C) in its Q1 2022 investor letter. Here is what the firm has to say:

“Shares of Citigroup declined in the quarter as investors became increasingly negative on capital markets activity. The company is also continuing to divest certain consumer banking geographies which may be dilutive to earnings in the near term.”

1. U.S. Bancorp (NYSE:USB)

Dividend Yield as of October 31: 4.48%

U.S. Bancorp (NYSE:USB) is one of the largest banking institutions in the US that provides financial advisory and other banking services to its consumers. The company is one of the best dividend stocks on our list as it has been raising its dividends consistently for 12 years. Currently, it offers a quarterly dividend of $0.48 per share and has a dividend yield of 4.48%, as of October 31.

In October, JPMorgan maintained an Overweight rating on U.S. Bancorp (NYSE:USB) with a $46 price target. The firm presented a positive outlook on the banking stocks in this current market environment.

The number of hedge funds tracked by Insider Monkey having stakes in U.S. Bancorp (NYSE:USB) stood at 43 in Q2 2022, growing from 40 in the previous quarter. The collective value of these stakes is over $6.5 billion. In addition to Warren Buffett, Ken Griffin, Jim Simons, and Donald Yacktman were some other prominent shareholders of the company in Q2.

ClearBridge Investments mentioned U.S. Bancorp (NYSE:USB) in its Q4 2021 investor letter. Here is what the firm has to say:

“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We have increased our exposure to interest-rate sensitive banks by adding to existing positions in U.S. Bancorp.”

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