Jessica Inskip Explains Why She Likes This Dividend Growth Stock With Over 2% Yield

We recently published Analysts Are Talking About These 10 Stocks as AI Investments Continue to Grow. Citigroup Inc (NYSE:C) is one of the stocks analysts were recently talking about.

Jessica Inskip from StockBrokers explained in a recent program on Schwab Network why she likes Citigroup Inc (NYSE:C). The analyst highlighted the company’s dividend and expansion as some of the reasons for being bullish on the stock:

“City is this turnaround story. So, this is a longerterm investment play that’s certainly playing out as we can see from the overperformance up 42% versus 12 and a half% for the S&P 500. Now as far as why I want to add it to my portfolio, it really came down to that high quality dividend scanned. They have a 2.41% dividend yield. I always look for free cash flow per share that’s greater than that annual dividend amount. They check that box. They have a payout ratio of about 33% which means there’s still room for growth opportunity and they have a history of a dividend growth rate. The most recent actually increasing that dividend was after the bank stress test which could be another potential catalyst for them as we get more deregulation within the banking sector.”

Hotchkis & Wiley Large Cap Disciplined Value Fund stated the following regarding Citigroup Inc. (NYSE:C) in its second quarter 2025 investor letter:

“Citigroup Inc. (NYSE:C) is one of the largest US banks by total assets. Investment in its IT, compliance and risk capabilities have pressured margins and returns over recent years, obscuring the banks strong core franchise. With these investments now largely complete we expect Citi’s expense to decline and its margins and returns to be more consistent with peers. Citigroup performed well in the quarter on improved profitability and positive operating leverage. We think that C is very undervalued on our normal expectations and would still be attractive even if they do not fully achieve their goals.”

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