We recently compiled a list of the 10 Best Bank Dividend Stocks To Buy Right Now. In this article, we are going to take a look at where JPMorgan Chase & Co. (NYSE:JPM) stands against the other bank dividend stocks.

The year 2024 was significant for major US banks. A recent Financial Times report highlighted that the country’s seven largest banks accounted for 56% of the industry’s profits in the first nine months of the year, up from 48% in the same period of 2023. The banking sector has also strengthened its capital position. In November, the Federal Reserve Board reported that 99% of US banks maintained capital levels above regulatory requirements. In addition, the Federal Deposit Insurance Corporation (FDIC) observed a 3.5% rise in equity capital during the third quarter of 2024, reinforcing the sector’s improving capitalization.

Bank stocks surged after President-elect Donald Trump’s victory in the 2024 presidential election. The rally was swift and broad-based, driven by market expectations of a more lenient regulatory environment starting in 2025, particularly regarding mergers and acquisitions. In November, the median total return for the 211 banks analyzed by S&P Global Market Intelligence reached 13.4%, significantly outperforming the broader market’s 5.9% return.

Also read: 14 Best Large Cap Dividend Growth Stocks To Buy Now

Another factor influencing the bank’s performance was the Federal Reserve’s release of parameters for its annual industry stress test, which outlined milder hypothetical economic shocks compared to previous years. Although the test remains challenging—projecting US unemployment rising to 10% and home prices dropping by 33%—the 2025 scenario includes smaller increases in joblessness and less severe declines in stock and real estate values than in recent years. Barclays analyst Jason Goldberg highlighted these adjustments in a report titled “2025 Stress Test: Scenarios Easier than Past Two Years.” Bank of America analyst Ebrahim Poonawala noted that with the latest version of the test being less stringent and more predictable, banks may not need to maintain as large of a capital buffer later this year. Here are some other comments from the analyst:

“The 2025 stress test scenario, broadly better vs last year, increases our confidence that banks should begin to see the relief on regulatory capital requirements, given our expectations for a shift to a balanced, transparent, and more predictable regulatory regime.”

In December, Moody’s upgraded its industry outlook from negative to stable for the first time since 2023, pointing to interest rate cuts and monetary policy adjustments by G-20 nations. The Federal Reserve implemented three rate cuts last year, bringing its target interest rate down to a range of 4.25% to 4.5%. Wall Street remains optimistic about the sector, with Barclays analyst Jason Goldberg predicting that major bank stocks will continue to rise, driven by expectations of a pro-growth, deregulation-focused agenda under the new administration. However, he acknowledged that corporate borrowing has remained subdued as businesses evaluate the post-election environment.

Investor interest in bank stocks is growing, largely due to their attractive dividend payouts. A report from Janus Henderson revealed that banks were responsible for one-fifth of all dividends distributed in the third quarter, reflecting a 6.6% increase on an underlying basis—outpacing the average across all sectors. Given their significant market presence, banks contributed the most to dividend growth in Q3, slightly surpassing the media sector. The latter saw a substantial 166% surge in payouts, driven by the resumption of dividend payments from major tech companies. The report further highlighted that bank stocks paid $38.2 billion in dividends during the third quarter of 2024. Given this, we will take a look at some of the best dividend stocks from the banking sector.

Our Methodology

For this list, we picked the top 10 bank dividend stocks based on their popularity among elite hedge funds in the third quarter of 2024. We gauged hedge fund sentiment for these stocks using Insider Monkey’s database of 900 hedge funds, as of Q3 2023.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).

JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 105

JPMorgan Chase & Co. (NYSE:JPM) is one of the largest banks in the US. The company excels in commercial banking, financial transaction processing, and asset management. In FY24, the company achieved impressive results, reporting a record annual profit of $58.5 billion, which was an 18% increase from the previous year. This growth was largely driven by the bank’s dealmakers and traders capitalizing on a market rebound in the fourth quarter. However, its net interest income (NII) fell by 3% year-over-year to $23.5 billion in Q4 2024, marking its first decline since 2021.

Since the start of 2025, JPMorgan Chase & Co. (NYSE:JPM) has delivered a nearly 15% return to shareholders, compared with a just 4% return of the broader market. Its success has been largely attributed to its focus on investment banking and wealth management. In Q4 2024, investment banking fees surged by 49% from the previous year, driven by strong client engagement. Meanwhile, the Asset & Wealth Management division saw a 25% increase in net income, reaching $1.5 billion, fueled by record client inflows that boosted assets under management.

JPMorgan Chase & Co. (NYSE:JPM) is well-regarded as a top dividend stock, consistently distributing dividends to shareholders since 1972. Demonstrating its commitment to rewarding investors, it paid $3.5 billion in dividends during the most recent quarter. The company offers a quarterly dividend of $1.25 per share and has a dividend yield of 1.81%, as of February 13.

Overall JPM ranks 1st on our list of the best bank dividend stocks to buy. While we acknowledge the potential for JPM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.