5 Most Promising Dividend Stocks According to Analysts

1. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 100

One-Year Average Price Estimate: $40.43

Bank of America Corporation (NYSE:BAC) is one of the most promising dividend stocks according to analysts. Bank of America Corporation (NYSE:BAC)’s client base is expected to increase as customer flock to major banks to deposit their money amid the SVB collapse. In February, Bank of America Corporation (NYSE:BAC) declared a quarterly dividend of $0.22 per share, in line with the previous dividend. Forward dividend yield at the time came in at 2.45%. The dividend is payable on March 31 to shareholders of record as of March 3.

At the end of the fourth quarter of 2022, 100 hedge funds out of the 943 funds tracked by Insider Monkey had stakes in Bank of America Corporation (NYSE:BAC).

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.”

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