12 Best Safe Dividend Stocks for 2025

5. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 88

5-Year Average Payout Ratio: 34.7%

Citigroup Inc. (NYSE:C) is an American multinational investment bank and financial services company. The bank is undergoing structural changes under the leadership of CEO Jane Fraser, who is working to transform the sprawling institution into a more streamlined and profitable enterprise. Fraser’s strategy involves cutting less profitable operations and focusing on areas that enhance efficiency and profitability. Her initial plan included reducing expensive ventures and optimizing the bank’s expense and capital structures. Upon assuming her role, Fraser announced that Citigroup would exit or close down 13 global consumer franchises, including its highly profitable business in Mexico. In the past 12 months, the stock has surged by over 41%.

In the third quarter of 2024, Citigroup Inc. (NYSE:C) reported $20.3 billion in revenue, marking a 1% increase from the previous year. The Markets segment experienced growth, with Equities revenues rising by 32%. Investment Banking revenue increased by 31%, largely due to investment-grade debt issuance. The recent adjustments in the Wealth business are yielding positive results, with a 9% growth in revenue, driven by substantial gains in client investment assets and investment fee income. US Personal Banking revenues rose by 3%, with Branded Cards seeing an 8% boost, supported by new account acquisitions, higher spending, and improved payment rates, which contributed to the growth in interest-earning balances.

Citigroup Inc. (NYSE:C) is one of the best dividend stocks as the company has been making regular dividend payments for the past 34 years. The company increased its quarterly dividend by 5.7% in June after successfully passing the Federal Reserve’s annual stress test. Moreover, it paid $2.1 billion to investors through dividends and share repurchases in the most recent quarter. Currently, it pays a quarterly dividend of $0.56 per share and has a dividend yield of 3.06%, as of January 13.

As of Insider Monkey’s database of Q3 2024, 88 hedge funds, up from 85 in the previous quarter, owned stakes in Citigroup Inc. (NYSE:C). The consolidated value of these stakes is roughly $11 billion.