10 Best DRIP Stocks To Own Now

1. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 113

Bank of America Corporation (NYSE:BAC) is an American financial services company, based in North Carolina. In the fourth quarter of 2024, the company delivered strong financial results, generating $25.3 billion in revenue, up from $22 billion in the same period the previous year. Net income saw a significant rise, more than doubling to $6.7 billion from $3.1 billion a year earlier. The bank continued to grow its customer base, adding 213,000 new consumer checking accounts, extending its streak of quarterly growth to six consecutive years. Moreover, it returned $2 billion to shareholders through dividend distributions.

Bank of America Corporation (NYSE:BAC) benefits from several advantages that strengthen its market position and set it apart from both traditional banks and fintech competitors. Its broad distribution network, combining a strong digital platform with an extensive branch presence, enables it to grow its low-cost deposit base and attract new customers, driving revenue growth. Additionally, its large scale allows for effective cost management, supporting steady profitability. The bank’s well-established brand further enhances its ability to retain and attract clients. In the past 12 months, the stock has surged by more than 32%.

Bank of America Corporation (NYSE:BAC) currently pays a quarterly dividend of $0.26 per share and has a dividend yield of 2.32%, as of February 23. The company has been making regular dividend payments to shareholders for the past 27 years.

The number of hedge funds tracked by Insider Monkey owning stakes in Bank of America Corporation (NYSE:BAC) grew to 113 in Q4 2024, from 98 in the previous quarter. The consolidated value of these stakes is over $40.2 billion.

Overall Bank of America Corporation (NYSE:BAC) ranks first on our list of the best DRIP stocks to invest in. While we acknowledge the potential for BAC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BAC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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