10 Best Bank Dividend Stocks To Buy Right Now

3. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 88

An American multinational investment bank, Citigroup Inc. (NYSE:C) ranks third on our list of the best dividend stocks from the banking sector. In fiscal year 2024, the company achieved a nearly 40% increase in net income, totaling $12.7 billion and surpassing its annual revenue target. This growth was fueled by strong performances across its Services, Wealth, and US Personal Banking divisions. The company maintained expenses within its projected range, improved its efficiency ratio, and successfully completed a significant reorganization. Annual revenue reached $81.1 billion, marking a 3% year-over-year increase.

In the past 12 months, Citigroup Inc. (NYSE:C) has outperformed the broader market, surging by over 51%. The company is undergoing a multi-year restructuring, streamlining its operations by exiting complex business segments and focusing on areas that can generate returns at or above its cost of capital. Over the past three years, it has made notable progress in strengthening risk management, compliance, and accountability.

Citigroup Inc. (NYSE:C) has maintained a strong track record of returning capital to shareholders through consistent dividend payments. In 2024, it distributed $6.7 billion via dividends and share repurchases. With a payout ratio of 58%, its dividend program remains sustainable. In addition, the company has upheld regular dividend payments for 34 consecutive years and currently offers a quarterly dividend of $0.56 per share. As of February 13, the stock has a dividend yield of 2.74%.