5 Best Bank Dividend Stocks to Buy Now

2. Citigroup Inc. (NYSE:C)

Dividend Yield as of October 31: 4.42%

Citigroup Inc. (NYSE:C) is a New York-based multinational investment banking company that provides related financial services to its consumers. The company is one of the best dividend stocks on our list as it has raised its dividends at a CAGR of 20.59% in the last five years. It currently pays a quarterly dividend of $0.51 per share and has a dividend yield of 4.42%, as of October 31.

In Q3 2022, Citigroup Inc. (NYSE:C) generated over $9 billion in free cash flow, which was enough to support its dividend payments worth over $1 billion. The company has a safe payout ratio of 29%, which further signals dividend growth.

BMO Capital maintained an Outperform rating on Citigroup Inc. (NYSE:C) in October with a $71 price target, highlighting the company’s strong performance across Services and Branded Cards.

As of the close of Q2 2022, 82 hedge funds tracked by Insider Monkey owned stakes in Citigroup Inc. (NYSE:C), down from 88 in the previous quarter. These stakes have a consolidated value of over $7.4 billion. Among these hedge funds, Berkshire Hathaway was the company’s leading stakeholder in Q2.

Diamond Hill Capital mentioned Citigroup Inc. (NYSE:C) in its Q1 2022 investor letter. Here is what the firm has to say:

“Shares of Citigroup declined in the quarter as investors became increasingly negative on capital markets activity. The company is also continuing to divest certain consumer banking geographies which may be dilutive to earnings in the near term.”