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4 Wall Street Blue Chip Financial Giants Are Raising Their Dividends
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After years of alow-interest rate environment, which has reversed significantly over the last two years, many investors continue to turn to equities for growth potential and solid and dependable dividends. These help provide an income stream, equating to total return, one of the most influential investment strategies. It's important to always keep in mind the impact of total return on portfolios, as it is a key factor in achieving overall investing success. Total return, which is the combined increase in a stock’s value plus dividends, is a powerful concept. For example, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%—10% for the increase in stock price and 3% for the dividends paid. Four top Wall Street blue chip financial companiesthat are Wall Street favorites raised their dividends last Friday, and all four are among the biggest and best stocks for investors to consider now. All are outstanding additions to long-term growth and income portfolios.
The company posted strong first-quarterresults and will likely do the same in the just completed second quarter. Bank of America Corporation (NYSE: BAC) is a ubiquitous presence in the United States, providing:
Bank of Americahas expanded into several new US markets, and its global scale ideally positions it to benefit from accelerating loan growth over the next two years. Moreover, unlike smaller peers, scale allows the bank to substantially increase investment over the next few years without notably jeopardizing returns, driving further market share gains.Warren Buffett owns1,032 852,006 bank shares, 13% of the float, and 9.5% of Berkshire Hathaway’s portfolio.Stockholders arecurrently paid a 2.41% yield. The company boosted the dividend 8% to $0.26 per share.
This is a top bank that Warren Buffett bought a massive $2.5 billion worth of stock in the summer of 2022. Citigroup Inc. (NYSE: C) is a leading global diversified financial service company that provides consumers, corporations, and governments with a broad range of financial products and services. Citigroup offers:
Citi operates and does business in more than 160 countries/ jurisdictions in North America, Latin America, Asia, Europe/Middle East and Africa (EMEA).Trading at a reasonable 10.3 times estimated 2024 earnings, this company looks very reasonable in what remains a volatile stock market and in a sector that has dramatically lagged but looks to be gaining ground. Shareholders arecurrently paid a 3.34% yield. The company raised the dividend 5.7% to $0.56 per share.
This stock trades at a still reasonable 12.4 times estimated 2024 earnings. JPMorgan Chase & Co. (NYSE: JPM) is one of the leading global financial services firms and one of the largest banking institutions in the US, with about $2.6 trillion in assets. The company was formed through the merger of retail bank Chase Manhattan and investment bank JP Morgan.
JPMorgan Chase & Co. is a versatile entity with a diverse range of operating divisions. These include:
Top analysts across Wall Street are very positive about the money center and investment giant, pointing to many reasons. Number one is that the industry titan faces a continued broad recovery in nearly every aspect of its business.
Stockholders arecurrently paid a 2.27% dividend. The company boosted the dividend 8.7% to $1.25 per share and announced a massive $30 billion share buyback.
The firm also has an asset management business, which adds to the lower-risk business profile the firm has pursued since the financial crisis.
In 2020, the Wall Street investment bank closed on a $13 billion purchase of the discount brokerage E-Trade, which had at the time 5.2 million customers. The company ushered in a revolutionary platform that helped start a dramatic shift among financial services firms and fueled the rise of indexes and exchange-traded funds, making investing vastly easier for do-it-yourself investors.
Shareholders arecurrently paid a 3.50% yield. The company raised the dividend 8.85% to $0.925 per share. In addition they announced a $20 billion share repurchase program. Four top finacial companies, all rated Buy across Wall Street, that raise their dividends to shareholders. Not only is increasing dividends and returning capital to investors necessary, but it also shows that the company is doing well and has the earnings and cash flow strength to increase the payouts.
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