11 Best Dividend Paying Stocks to Buy According to Hedge Funds

4. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 113

Bank of America Corporation (NYSE:BAC) is an American financial services company. It generates revenue from a broad range of segments, including retail banking, wealth management, and investment banking. Even amid recent market fluctuations, Bank of America (NYSE:BAC) continues to show solid fundamentals. Its current share price may offer a compelling opportunity for investors looking for long-term growth and financial stability.

Bank of America Corporation (NYSE:BAC) has maintained solid financial performance over the years, consistently remaining profitable. Its average net profit margin over the last five years stands at 27.9%, reflecting its ability to withstand different market environments. In Q4 2024, the bank’s net income surged to $6.7 billion—more than double the $3.1 billion it earned a year earlier. In addition, it continued to grow its retail presence, opening 213,000 new consumer checking accounts and marking its 24th consecutive quarter of growth in this area.

Bank of America Corporation (NYSE:BAC), one of the best dividend-paying stocks, distributed approximately $2 billion to shareholders through dividends in the most recent quarter in an effort to return value to shareholders. Moreover, the company has been growing its payouts for 11 consecutive years and has paid regular dividends for 27 years in a row. Currently, it pays a quarterly dividend of $0.26 per share and has a dividend yield of 2.89%, as of April 12.