5 Dividend Stocks with Sustainable Payout Ratios

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In this article, we discuss 5 dividend stocks with sustainable payout ratios. If you want to read our detailed analysis of dividend stocks and the importance of payout ratios, go directly to read 10 Dividend Stocks with Sustainable Payout Ratios

5. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 88
5-Year Average Payout Ratio: 26.5%

An American financial services company, Bank of America Corporation (NYSE:BAC) ranks fifth on our list of the best dividend stocks with sustainable payout ratios. The company has a 24-year run of paying regular dividends to shareholders and it currently offers a quarterly dividend of $0.24 per share. The stock has a dividend yield of 2.93%, as of January 23. In the past five years, its average payout ratio came in at 26.5%.

As per Insider Monkey’s database of Q3 2023, 88 hedge funds owned stakes in Bank of America Corporation (NYSE:BAC), compared with 90 in the previous quarter. These stakes have a total value of more than $31.3 billion, and the majority of this stake, amounting to $28.2 billion, is attributed to Berkshire Hathaway, the company owned by Warren Buffett.

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