1. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 112
JPMorgan Chase & Co. (NYSE:JPM) is an American investment banking company that specializes in a wide range of related services and products. The stock has outperformed the broader market over the past two years, delivering an 80% return to shareholders, while the market returned over 42% during this period. The company is currently experiencing strong business momentum, driving its performance forward. In the first quarter of 2024, it reported revenue of $42 billion, up from $38.3 billion from the same period last year. The company posted a 2% expansion in its deposit base and a 16% increase in loans during the quarter, which analysts see as positive trends. In addition, while the bank increased its provision for credit losses by $1.9 billion, this figure was lower than the $2.3 billion recorded in the same period last year.
JPMorgan Chase & Co. (NYSE:JPM) could see continued positive outcomes once the Federal Reserve begins to decrease interest rates. In comparison to smaller banks, the company benefits from a cost advantage in attracting low-cost deposits and efficiently leveraging its substantial expenses across a larger revenue base. This trend contributes to strong and consistent profitability.
Carillon Tower Advisers highlighted JPMorgan Chase & Co. (NYSE:JPM)’s strong performance in its Q1 2024 investor letter. Here is what the firm has to say:
“JPMorgan Chase & Co. (NYSE:JPM) contributed positively to performance following solid financial results and positive guidance for the remainder of 2024. Moreover, growing chatter around rising capital markets activity likely contributed to the stock’s strong performance relative to other banks. Recall that JPMorgan has a robust capital markets franchise.”
JPMorgan Chase & Co. (NYSE:JPM) pays a quarterly dividend of $1.15 per share and plans to increase it by nearly 9% after completing its stress test process. With a dividend yield of 2.25% as of July 7, JPM is one of the best dividend stocks on our list. In the most recent quarter, it returned $3.3 billion to shareholders through dividends.
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.
