5 Best Regional Bank Dividend Stocks to Buy

In this article, we discuss 5 best regional bank dividend stocks to buy. If you want to read our detailed analysis of the banking sector and its performance last year, go directly to read 11 Best Regional Bank Dividend Stocks to Buy. 

5. KeyCorp (NYSE:KEY)

Number of Hedge Fund Holders: 42

KeyCorp (NYSE:KEY) is an American bank holding company, based in Ohio. The company declared a quarterly dividend of $0.205 per share on January 10, which was consistent with its previous dividend. It did not raise its dividend in 2023 after rewarding shareholders with growing dividends for the past 12 consecutive years. However, the company has been paying regular dividends for nearly 30 years. The stock has a dividend yield of 5.90%, as of February 7.

At the end of September 2023, 42 hedge funds in Insider Monkey’s database owned stakes in KeyCorp (NYSE:KEY), compared with 49 in the preceding quarter. These stakes have a collective value of roughly $650 million.

4. Comerica Incorporated (NYSE:CMA)

Number of Hedge Fund Holders: 42

Texas-based financial services company, Comerica Incorporated (NYSE:CMA) is next on our list of the best dividend stocks from the regional banking industry. The company’s per-share dividend comes in at $0.71 every quarter for a dividend yield of 5.77%, as recorded on February 7. In April 2023, the company announced a 4% hike in its quarterly dividend for the first time since the pandemic in 2020.

As per Insider Monkey’s database of Q3 2023, 42 hedge funds held stakes in Comerica Incorporated (NYSE:CMA), down from 46 in the previous quarter. These stakes have a collective value of approximately $562 million. With over 2.8 million shares, North Reef Capital was the company’s leading stakeholder in Q3.

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

Number of Hedge Fund Holders: 45

The PNC Financial Services Group, Inc. (NYSE:PNC) offers various banking products and services for individual consumers, including checking and savings accounts, credit cards, mortgages, personal loans, auto loans, home equity lines of credit, and online banking services. PNC is one of the best dividend stocks on our list as the regional bank has been growing its dividend for the past 13 consecutive years. It currently offers a quarterly dividend of $1.55 per share and has a dividend yield of 4.16%, as of February 7.

As of the close of Q3 2023, 45 hedge funds owned stakes in The PNC Financial Services Group, Inc. (NYSE:PNC), according to Insider Monkey’s database. The total value of these stakes is more than $754.5 million.

2. Truist Financial Corporation (NYSE:TFC)

Number of Hedge Fund Holders: 47

Truist Financial Corporation (NYSE:TFC) pays a quarterly dividend of $0.52 per share and has raised its dividends for eight years in a row. The American financial services company generated $5.76 billion in revenues in the fourth quarter of 2023, which beat analysts’ estimates by $50 million. With a dividend yield of 5.86% as of February 7, TFC is one of the best dividend stocks on our list.

The number of hedge funds tracked by Insider Monkey owning stakes in Truist Financial Corporation (NYSE:TFC) grew to 47 in Q3 2023, from 42 in the preceding quarter. These stakes have a total value of more than $976.2 million. Among these hedge funds, Diamond Hill Capital was the company’s leading stakeholder in Q3.

1. First Horizon Corporation (NYSE:FHN)

Number of Hedge Fund Holders: 48

First Horizon Corporation (NYSE:FHN) tops our list of the best dividend stocks from the regional banking sector. The financial services company pays a quarterly dividend of $0.15 per share and has a dividend yield of 4.37%, as of February 7. The company has been paying regular dividends to shareholders since 1989.

As of the end of Q3 2023, 48 hedge funds in Insider Monkey’s database reported having stakes in First Horizon Corporation (NYSE:FHN), compared with 50 in the preceding quarter. The overall value of these stakes is roughly $800 million.

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