13 Best American Dividend Stocks to Buy According to Analysts

5. Bank of America Corporation (NYSE:BAC)

Upside Potential as of April 20: 29.16%

Bank of America Corporation (NYSE:BAC) is a North Carolina-based multinational investment bank and financial services company. One of the bank’s key strengths lies in its diverse revenue base. The company operates across multiple areas of the financial sector, generating income from four main divisions: consumer banking, global wealth and investment management, global banking, and global markets. This diversified structure helps balance the business—when one segment faces headwinds, growth in another can help keep overall revenue steady.

In the first quarter of 2025, Bank of America Corporation (NYSE:BAC) delivered solid results, reporting $27.4 billion in revenue, a 6% increase year-over-year. The rise was largely driven by higher noninterest income across all business segments. Net interest income also grew 3% from the prior year, reaching $14.4 billion.

Bank of America Corporation (NYSE:BAC)’s balance sheet remained strong, with average deposits totaling $1.96 trillion, marking the seventh straight quarter of growth in this area. Its Common Equity Tier 1 (CET1) ratio stood at 11.8% under the standardized approach, well above the required minimum of 10.7%. During the quarter, the company returned $6.5 billion to shareholders, including $2.0 billion in common stock dividends and $4.5 billion in share repurchases.

Bank of America Corporation (NYSE:BAC) currently pays a quarterly dividend of $0.26 per share and has a dividend yield of 2.78%, as of April 20. The company has been paying regular dividends to shareholders for the past 27 years and has raised dividends for 11 consecutive years. With an upside potential of nearly 30%, BAC is one of the best dividend stocks to invest in.