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 the performance of dividend stocks in the past, go directly to read 13 Best Bank Dividend Stocks To Buy Now. 

5. The Goldman Sachs Group, Inc. (NYSE:GS)

Number of Hedge Fund Holders: 74
Dividend Yield as of March 17: 3.17%

The Goldman Sachs Group, Inc. (NYSE:GS) is an American multinational investment bank and financial services company. The company currently pays a quarterly dividend of $2.50 per share and has a dividend yield of 3.17%, as of March 17. It is among the best bank dividend stocks on our list.

In March, BofA raised its price target on The Goldman Sachs Group, Inc. (NYSE:GS) to $425 with a Buy rating on the shares, presenting a positive outlook for the company.

At the end of Q4 2022, 74 hedge funds in Insider Monkey’s database owned stakes in The Goldman Sachs Group, Inc. (NYSE:GS), up from 69 in the previous quarter. The collective value of these stakes is roughly $5 billion. Ken Griffin and Cliff Asness were some of the company’s most prominent stakeholders in Q4.

Here is what Manole Capital Management had to say about The Goldman Sachs Group, Inc. (NYSE:GS) in its Q3 2022 investor letter:

“Back in 2019, The Goldman Sachs Group, Inc. (NYSE:GS) made a splash in the card industry by working with Apple and MasterCard on a credit card. The actual card is fairly sleek (as you can see below), as customers names are etched into an Apple titanium card. The no-fee card generated a lot of hype, as many early users were quick to post their latest card on various social media sites.

The initial goal of Marcus (back in 2016) was to leverage Goldman’s wonderful name brand and build a full-service digital bank. This card was a large piece of GS’s ambitions to grow its retail banking franchise called Marcus. After 5 years, Marcus now has 14 million customers and $16 billion in loan balances. Surprisingly, Marcus now represents nearly 20% of the firm’s total revenue.

We thought it would be interesting to look how the Apple Card is doing in terms of loans and exposures. With over $100 billion in assets, this has been a successful source of cheap deposits for GS. Despite having an institutional / “white shoe” brand in the investment banking and trading world, GS’s Apple Card has been a disappointment.” (Click here to read the full text)

4. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 81
Dividend Yield as of March 17: 4.47%

Citigroup Inc. (NYSE:C) is a New York-based multinational investment banking company. In January, BofA raised its price target on the stock to $60 with a Buy rating on the shares, noting the company’s performance in the last 12 months.

Citigroup Inc. (NYSE:C), one of the best bank dividend stocks to buy, currently offers a quarterly dividend of $0.51 per share. The stock’s dividend came in at 4.47% on March 17.

At the end of Q4 2022, 81 hedge funds tracked by Insider Monkey owned stakes in Citigroup Inc. (NYSE:C), compared with 85 in the preceding quarter. The collective value of these stakes is nearly $7.5 billion. With over 55 million shares, Berkshire Hathaway was the company’s leading stakeholder in Q4.

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.”

3. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 87
Dividend Yield as of March 17: 3.05%

Wells Fargo & Company (NYSE:WFC) is a multinational financial services company that specializes in bank accounts, mortgages, and other banking services. The company currently pays a quarterly dividend of $0.30 per share and has a dividend yield of 3.05%, as of March 17. It is one of the best bank dividend stocks on our list as it has paid regular dividends to shareholders since 1959.

In January, Citigroup raised its price target on Wells Fargo & Company (NYSE:WFC) to $52 with a Buy rating on the shares. The firm noted that the stock remained the ‘best value’ on board due to management’s solid performance.

Wells Fargo & Company (NYSE:WFC) experienced positive hedge fund sentiment in Q4 2022, as 87 funds in Insider Monkey’s database owned investments in the company, up from 77 in the previous quarter. These investments have a value of over $5.5 billion collectively.

2. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 100
Dividend Yield as of March 17: 3.04%

Bank of America Corporation (NYSE:BAC) is an American multinational investment bank and financial services company. The company recently reported that it has received over $15 billion in new deposits following the collapse of three regional banks. It is among the best bank dividend stocks on our list.

Bank of America Corporation (NYSE:BAC) has been raising its dividends consistently for the past nine years. the company offers a quarterly dividend of $0.22 per share and has a dividend yield of 3.04%, as of March 17.

At the end of December 2022, 100 elite funds in Insider Monkey’s database were long Bank of America Corporation (NYSE:BAC), up from 97 in the previous quarter. The stakes owned by these hedge funds have a consolidated value of $37.5 billion.

Ariel Investments mentioned Bank of America Corporation (NYSE:BAC) in its third-quarter 2022 investor letter. Here is what the firm has to say:

“We initiated three new positions in the quarter. We added leading financial institution Bank of America Corporation (NYSE:BAC) which serves individual consumers, small and middle-market businesses, and large corporations with a full range of banking, investing, asset management, and other financial and risk management products and services. The current company was formed through various mergers including NationsBank, FleetBoston, US Trust, Countrywide Financial, and Merrill Lynch with the legacy commercial bank to form a national banking powerhouse and bulge bracket investment firm. As one of the ‘Big Four’ U.S. banks it enjoys scale driven cost advantages and economies of scale which provide meaningful competitive advantages and potential for strong returns in the largely commoditized banking industry. A survivor of the financial crisis, BAC has emerged with a solid capital base and stands to benefit from a rising interest rate environment.”

1. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 100
Dividend Yield as of March 17: 3.06%

A New York-based multinational financial services company, JPMorgan Chase & Co. (NYSE:JPM) ranks first on our list of the best bank dividend stocks to buy. The company offers a quarterly dividend of $1.00 per share and has a dividend yield of 3.06%, as recorded on March 17.

At the end of Q4 2022, 100 hedge funds tracked by Insider Monkey reported having stakes in JPMorgan Chase & Co. (NYSE:JPM), compared with 110 in the previous quarter. These stakes have a collective value of over $5.1 billion. Citadel Investment Group was the company’s largest stakeholder in Q4.

You can also take a look at 11 Bank Stocks with Insider Buying and Selling Last Week and 15 Best Dividend Paying Stocks to Buy Now

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