15 Best S&P 500 Dividend Stocks to Buy Now

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

Number of Hedge Fund Holders: 123

JPMorgan Chase & Co. (NYSE:JPM) is an American multinational financial services company that offers services in commercial banking, financial transaction processing, and asset management. In 2024, the bank achieved record-breaking financial results, with annual revenue exceeding $177 billion and net income surpassing $58 billion. Both figures reflected strong double-digit growth from the previous year, with revenue increasing by 12% and profitability rising by 18%.

These milestones were largely driven by growth across all three of its primary business divisions. The core Consumer and Community Banking unit saw a 2% increase from 2023, while the Commercial and Investment Banking and Asset and Wealth Management segments each posted a solid 9% gain.

JPMorgan Chase & Co. (NYSE:JPM) has established itself as a leading dividend stock, maintaining consistent payouts since 1972. In the latest quarter, the company reinforced its commitment to shareholder returns by distributing $3.5 billion in dividends. Its quarterly dividend comes in at $1.25 per share and has a dividend yield of 1.9%, as of February 27.

JPMorgan Chase & Co. (NYSE:JPM) has also built up a substantial reserve of excess capital, amounting to approximately 10% of its market capitalization, while maintaining a disciplined approach to capital management. Although share repurchases have not been a primary focus, the company still bought back $6.36 billion worth of stock in Q3 2024. As economic conditions improve, it is expected to gradually reduce its cash reserves and enhance capital returns to shareholders.

Overall, JPMorgan Chase & Co. (NYSE:JPM) ranks first on our list of the best dividend stocks in the broader market. 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.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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