5 Stocks That are Benefiting From Rising Inflation

2. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 84   

Bank of America Corporation (NYSE:BAC) provides banking and financial products. The stock stands to benefit as the rising rates will increase the earnings of the firm. On February 2, Bank of America Corporation (NYSE:BAC) declared a quarterly dividend of $0.21 per share, in line with previous. The forward yield was 1.79%. 

Hedge funds have been piling into Bank of America Corporation (NYSE:BAC) stock in recent months. At the end of the fourth quarter of 2021, 84 hedge funds in the database of Insider Monkey held stakes worth $47 billion in Bank of America Corporation (NYSE:BAC), compared to 72 the preceding quarter worth $46 billion.

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Bank of America Corporation (NYSE:BAC) was one of them. Here is what the fund said:

“Higher long-term interest rates supported financials such as Bank of America, which has shown both defensive and offensive characteristics in the past year. We believe it continues to be the least risky large bank from a credit standpoint, with conservative underwriting and controlled risk taking, a leading consumer deposit franchise, scale and technology. It is also a leader in its commitments to sustainability, or as it terms it, responsible growth. Disclosure and reporting at all levels form a large part of this commitment, including gender diversity and equality, environmental commitments and support of communities in which it operates. In the first quarter Bank of America announced it is setting a goal of net-zero greenhouse gas (GHG) emissions in its supply chain and operations, and notably also in its financing activities, before 2050.”