10 Best Bank Stocks with High Dividends

2. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 94

Dividend Yield as of August 4: 3.81%

Citigroup Inc. (NYSE:C) is a New York-based multinational investment bank and financial services company. The recent stress test once again highlighted the robustness of the company’s balance sheet. With a CET1 ratio of 13.6%, the company is raising its dividend by 6%. Significant progress has been made in simplifying operations, both strategically and organizationally. In addition, the firm is modernizing its infrastructure to enhance client service and automating processes to strengthen controls. In its recent earnings report, the company highlighted that it will persist in executing its transformation and strategy to achieve its medium-term goals and improve returns over time.

In the second quarter of 2024, Citigroup Inc. (NYSE:C) reported revenue of $20.1 billion, which showed a growth from $1.94 billion in the same period last year. The company attributed this growth to the strong performance across all businesses. The company is in the midst of restructuring, which is positively impacting its earnings. In March, it sold or closed 9 out of its 14 consumer franchises. Additionally, the company announced that its consumer business in Mexico is set for an initial public offering (IPO) by 2025.

Citigroup Inc. (NYSE:C) is a strong dividend stock, offering payouts to shareholders consistently for the past 34 years. With a low payout ratio of 34%, the company demonstrates that its future dividends are secure, with the potential to increase its payouts further. After the Fed’s stress test, the company raised its quarterly dividend by 6% in July to $0.56 per share. The stock’s dividend yield on August 4 came in at 3.81%.

Citigroup Inc. (NYSE:C) was a part of 94 hedge fund portfolios at the end of Q1 2024, growing significantly from 87 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of over $10.6 billion. With over 1 billion shares, Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q1.