5 Best Bank Stocks for Dividends

3. Citigroup, Inc. (NYSE:C)

Number of Hedge Fund Holders: 95
Total Value of Hedge Fund Holdings: $7.12 Billion
Dividend Yield as of May 7: 2.73%

Ranking 3rd in our list of the 10 best bank stocks for dividends is multinational investment bank Citigroup, Inc. (NYSE:C). The New York-based leading global bank has over 200 million customer accounts. On May 7, following an increase in customer demand, Citi announced plans to offer cryptocurrency services such as trading, custody, and finance.

Citigroup, Inc. (NYSE:C) has a market cap of $155.19 billion. In 2020, Citigroup, Inc.’s net income came in at $11.4 billion. Shares of C rose 62% over the past twelve months. In April, Argus Research maintained a Buy rating on Citigroup, Inc. and raised the price target to $87.

There were 95 hedge funds that reported owning stakes in Citigroup, Inc. (NYSE:C) at the end of the fourth quarter, up from 91 funds a quarter earlier. The total value of these stakes at the end of Q4 is $7.12 billion.

Artisan Partners Limited Partnership mentioned they sold their positions in C in its Q4 2020 investor letter:

“We fully exited position in Citigroup. Global financial services company Citigroup made a $900 million clerical error and received a public reprimand from federal regulators. This, after a decade focused on process control, information technology and risk systems, makes the error substantially more costly than just the $900 million mistake. Regulators believe the company’s risk management improvements have fallen short of expectations. To rectify the situation, a process and technology spending surge could negatively affect 2021-2022 profits by 10% to 20%. Trust and confidence are important in large financial institutions, and this incident combined with the CEO’s sudden retirement shook ours.”

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