Specifically, Wells Fargo and J.P. Morgan Chase are raking in profits and are funneling more of these profits to shareholders in the form of increased dividends and share buybacks.
This stands in stark contrast to Bank of America Corp (NYSE:BAC), which has yet to raise its dividend above a token payout, and is on much more shaky financial footing than its two rivals due to recurring legal bills.
As a result, prudent investors may want to give preference to Wells Fargo and J.P. Morgan Chase among the big bank stocks.
Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America, JPMorgan Chase & Co., and Wells Fargo. Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article This Bank Just Can’t Stay Out of Trouble originally appeared on Fool.com and is written by Robert Ciura.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.