5 Cash-Rich Dividend Stocks To Buy Now

2. Bank of America Corporation (NYSE:BAC)

Number Of Hedge Fund Holders: 97

Dividend Yield As Of January 20: 2.60%

Market Capitalization: $271.56 billion

Enterprise Value (EV): $143.75 billion

The Bank of America Corporation (NYSE:BAC) is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina. The bank caters to individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide.

On January 13, Bank of America Corporation (NYSE:BAC) reported Q4 GAAP earnings per share of $0.85 and a revenue of $24.53 billion, outperforming Wall Street estimates by $0.08 and $360 million, respectively.

As of January 20, Bank of America Corporation (NYSE:BAC) pays a quarterly dividend of $0.22 per share and has a dividend yield of 2.60%.

On January 17, Citi analyst Keith Horowitz raised the his price target on Bank of America Corporation (NYSE:BAC) to $38 from $36 but kept a Neutral rating on the shares. While sentiment was negative heading into its earnings, Horowitz was surprised to see the company’s stock outperform on the earnings report given the downside to its EPS consensus revisions.

According to Insider Monkey’s third quarter database, 97 hedge funds were long Bank of America Corporation (NYSE:BAC), compared to 99 funds in the earlier quarter. Harris Associates is a prominent stakeholder of the company, with 41.8 million shares worth $1.26 billion.

Ariel Investment made the following comment about Bank of America Corporation (NYSE:BAC) in its Q3 2022 investor letter:

“We initiated three new positions in the quarter. We added leading financial institution Bank of America Corporation (NYSE:BAC) which serves individual consumers, 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. The current company was formed through various mergers including NationsBank, FleetBoston, US Trust, Countrywide Financial, and Merrill Lynch with the legacy commercial bank to form a national banking powerhouse and bulge bracket investment firm. As one of the ‘Big Four’ U.S. banks it enjoys scale driven cost advantages and economies of scale which provide meaningful competitive advantages and potential for strong returns in the largely commoditized banking industry. A survivor of the financial crisis, BAC has emerged with a solid capital base and stands to benefit from a rising interest rate environment.”