12 Best Financial Sector Dividend Stocks To Buy Right Now

1. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 105

JPMorgan Chase & Co. (NYSE:JPM), one of the largest banks in the US, has a strong presence in commercial banking, financial transaction processing, and asset management. In fiscal year 2024, the bank delivered record earnings, posting an annual profit of $58.5 billion—an 18% increase from the previous year. This growth was largely fueled by its dealmakers and traders benefiting from a market rebound in the fourth quarter. However, net interest income (NII) declined 3% year-over-year to $23.5 billion in Q4 2024, marking its first drop since 2021.

JPMorgan Chase & Co. (NYSE:JPM) is recognized as a leading dividend stock, having maintained consistent dividend payments to shareholders since 1972. In the most recent quarter, the company reinforced its commitment to investor returns by distributing $3.5 billion in dividends. It currently offers a quarterly dividend of $1.25 per share and has a dividend yield of 1.81%, as of February 16.

JPMorgan Chase & Co. (NYSE:JPM) has outperformed the market in the past 12 months, surging by over 54%. The company’s strong performance has been largely driven by its emphasis on investment banking and wealth management. In the fourth quarter of 2024, investment banking fees jumped 49% year-over-year, reflecting heightened client activity. At the same time, the Asset & Wealth Management division posted a 25% rise in net income, reaching $1.5 billion, supported by record client inflows that expanded assets under management.

Overall JPMorgan Chase & Co. (NYSE:JPM) ranks first on our list of the best dividend stocks from the finance sector. While we acknowledge the potential for JPM 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 JPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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