5 Best Dividend Paying Stocks to Buy Now

4. Bank of America Corporation (NYSE:BAC)

Dividend Yield as of December 12: 2.69%

Number of Hedge Fund Holders: 97

Bank of America Corporation (NYSE:BAC) is a leading American bank with many competitive advantages and a dividend yield of 2.69% as of December 12. Although its EPS is expected to decline to $3.17 per share in 2022 from $3.50 per share in 2021, analysts nevertheless expect Bank of America Corporation (NYSE:BAC)’s earnings to rise to $3.69 per share in 2023 and $3.97 per share in 2024.

Ariel Investment commented on Bank of America Corporation (NYSE:BAC) in a Q3 2022 investor letter,

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.