1. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 114
Dividend Yield as of August 4: 2.31%
JPMorgan Chase & Co. (NYSE:JPM) tops our list of the best dividend stocks in the banking sector. The stock has proven to be a lucrative investment, delivering a total return of over 244% over the past decade, significantly surpassing the broader market’s gain of about 167% during the same period. Alongside these strong returns, the company performed well in the latest quarter. Nonetheless, CEO Jamie Dimon remains cautious, expressing concern that inflationary pressures might persist. He believes that interest rates may need to stay high for an extended period, which could heighten the risk of the US economy not achieving a smooth transition and facing a potential recession.
Despite ongoing geopolitical tensions and inflationary pressures, JPMorgan Chase & Co. (NYSE:JPM)’s priorities have remained steady. The company continues to invest significantly in its businesses to ensure long-term growth and profitability. In addition, it upholds a strong balance sheet and is preparing the firm to handle various potential economic conditions. In the second quarter of 2024, the company reported revenue of $50.2 billion, which showed a 22% growth from the same period last year. The company also posted a 15% growth in its assets under management (AUM) to $3.7 trillion.
In its quarterly earnings, JPMorgan Chase & Co. (NYSE:JPM) announced that the broad plans to increase its dividends for the second time this year. The company also declared that it returned $3.3 billion to shareholders through dividends in Q2 2024. It pays a quarterly dividend of $1.15 per share and has a dividend yield of 2.31%, as of August 4.
JPMorgan Chase & Co. (NYSE:JPM) was a popular buy among elite funds in the first quarter of 2024, as 112 funds held stakes in the company, growing from 103 in the previous quarter, according to Insider Monkey’s database. These stakes have a consolidated value of over $8.4 billion.
While we acknowledge the potential of JPM as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued dividend stock that is more promising than JPM but that trades at less than 7 times its earnings and yields nearly 10%, check out our report about the dirt cheap dividend stock.
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Disclosure: None. This article is originally published at Insider Monkey.
