10 Best American Bank Stocks To Buy Now

2. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 98

Bank of America Corporation (NYSE:BAC) is one of the world’s leading financial institutions. The bank’s extensive network of branches and robust digital presence have allowed it to attract customers, expand its deposit base, and effectively manage costs to maintain profitability.

BAC enjoys a healthy mix of contributions from its segments toward its overall success, with over half of its earnings coming from the people-focused Consumer Banking and Global Wealth & Investment Management (GWIM) businesses, whereas the other half is contributed by the Global Banking and Markets businesses, which are dedicated toward serving corporations and institutional investors.

On January 16, the company announced financial results for the fourth quarter of fiscal 2024. It reported a revenue of $25.3 billion, up 15% year-over-year. Net income for the quarter was posted at $6.7 billion, or 82 cents per diluted share, compared to $3.1 billion during the same period last year. Moreover, Bank of America Corporation (NYSE:BAC) also added 213,000 net new consumer checking accounts in Q4, marking a six-year streak of quarterly growth.

The company also maintained its commitment to shareholders, returning $3.5 billion in share repurchases and $2 billion in dividends during Q4. BAC has a strong dividend-paying history, spanning over 27 years, which makes it a reliable option for income investors.

According to Insider Monkey’s database for Q3 2024, 98 hedge funds held a stake in the company, making Bank of America Corporation (NYSE:BAC) one of the best American stocks to buy now.