10 Best Bank Stocks with High Dividends

8. Truist Financial Corporation (NYSE:TFC)

Number of Hedge Fund Holders: 57

Dividend Yield as of August 4: 4.94%

An American bank holding company, Truist Financial Corporation (NYSE:TFC) ranks eighth on our list of the best dividend stocks in the banking sector. In the second quarter, the company maintained strong momentum in its core banking operations, as demonstrated by robust YoY growth in investment banking and trading revenue, along with ongoing expense discipline. Client deposits have stabilized, with average deposits decreasing slightly by 0.3% YoY due to declines in non-interest bearing and time deposits. Its asset quality metrics are in line with expectations. Although loan demand remains subdued, there is optimism due to improved client interactions and increased capacity to meet their needs.

In addition to reporting strong earnings, Truist Financial Corporation (NYSE:TFC) successfully finalized the sale of its remaining interest in Truist Insurance Holdings. This, combined with organic capital generation, raised its capital ratio to 11.6% and increased tangible book value per share by 34%. The company’s current capital position and strategy offer substantial capacity to serve clients and stakeholders, sustain a strong dividend for shareholders, and fulfill its mission to inspire and enhance lives and communities.

Truist Financial Corporation (NYSE:TFC) can be a reliable investment for income investors as the company’s cash position is strong. As of the most recent quarter, the company has over $48 billion available in cash. With a payout ratio exceeding 60%, the bank’s figure is relatively high. However, since banks are permitted to maintain such elevated payout ratios, this should not raise significant concerns for investors. Moreover, the company has paid uninterrupted dividends to shareholders since 1997. It currently offers a quarterly dividend of $0.52 per share and has a dividend yield of 4.94%, as of August 4.

Truist Financial Corporation (NYSE:TFC) was a part of 57 hedge fund portfolios at the end of Q1 2024, down from 59 in the previous quarter, as per Insider Monkey’s database. The stakes held by these hedge funds have a collective value of more than $1.6 billion.