12 Best Fortune 500 Dividend Stocks To Buy Right Now

2. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 98

Dividend Yield: 2.32%

Market Cap: $344.5 billion

Bank of America Corporation (NYSE:BAC) ranks second on our list of the best large cap stocks. It is one of the world’s largest financial institutions, serving individuals, small- and middle-market businesses, and large corporations with a full range of banking, investing, asset management, and other financial and risk management products and services.

In Q3 of 2024, Bank of America Corporation (NYSE:BAC) generated $25.5 billion in revenue and earned $6.9 billion in net income after tax, driven by investment banking and trading. The bank’s Investment banking fees jumped 18% YoY to $1.4 billion as increasing confidence among clients spurred them to issue more debt and equity.

Bank of America Corporation (NYSE:BAC) launched its consumer investments business in 2010 and investments from its retail consumers have already swelled to more than $500 billion in assets at the end of 2024. The company is expecting the trend to continue and is aiming to cross the $1 trillion mark in the business in five years. What’s more is that nearly 33% of BAC’s consumer investment accounts are held by Gen Z and millennial clients, who have become more active in investing.

Bank of America Corporation (NYSE:BAC)’s strong deposit base is considered a significant strength in the current high-interest rate environment. The bank’s extensive branch system and robust digital presence enable it to expand its low-cost deposit base and attract new customers. The lender plans to open 165 more branches in the US by the end of 2026, which is expected to boost its investment assets even further.

Bank of America Corporation (NYSE:BAC) has paid and raised its dividend for 11 consecutive years, and maintained a dividend yield of 2.32% as of January 13, 2025. Analysts estimate that the bank will grow earnings by an average of 10% annually for the next three to five years, which could translate to significant dividend increases, making Bank of America Corporation (NYSE:BAC) a solid dividend growth stock in the long term.