10 Most Promising Dividend Stocks According to Hedge Funds

4. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 98

Bank of America Corporation (NYSE:BAC) is an American multinational investment bank and financial services holding company. In the fourth quarter of 2024, reported revenue of $25.3 billion, up from $22 billion in the same quarter a year earlier. Net income climbed to $6.7 billion, more than doubling the $3.1 billion recorded in the prior-year period. The bank also grew its customer base by adding 213,000 new consumer checking accounts, marking six consecutive years of quarterly expansion. In addition, it continued to reward shareholders by distributing $2 billion in dividends.

Bank of America Corporation (NYSE:BAC) benefits from several competitive advantages that strengthen its position in the industry and protect it from both traditional banks and fintech rivals. Its comprehensive distribution network, which blends a strong digital platform with a broad branch presence, helps the bank grow its low-cost deposit base and attract new customers, driving revenue. Moreover, its large scale enables efficient cost management, ensuring steady profitability. The bank’s established brand further enhances its attractiveness to both current and prospective clients. In the past 12 months, the stock has surged by over 36%.

Bank of America Corporation (NYSE:BAC) is one of the most promising dividend stocks as the company has never missed a dividend in 27 years. It currently offers a quarterly dividend of $0.26 per share and has a dividend yield of 2.25%, as of January 30.

The number of hedge funds tracked by Insider Monkey owning stakes in Bank of America Corporation (NYSE:BAC) grew to 98 in Q3 2024, from 92 in the previous quarter. These stakes are worth over $40.6 billion in total. With nearly 798 million shares, Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q3.