7 Cheap Quarterly Dividend Stocks to Invest in

2. Bank of America Corporation (NYSE:BAC)

Forward P/E Ratio: 12.64

An American multinational investment bank and financial services holding company, Bank of America Corporation (NYSE:BAC) ranks second on our list of the best cheap quarterly dividend stocks to buy now. The company possesses key competitive advantages that reinforce its industry position and provide resilience against both traditional banks and fintech competitors. Its extensive distribution network, which combines a robust digital platform with a widespread branch presence, enables the bank to expand its low-cost deposit base and attract new customers, driving revenue growth. In addition, its large scale allows for efficient cost management, supporting consistent profitability. The bank’s well-established brand also strengthens its appeal among existing and potential clients. In the past 12 months, the stock has surged by nearly 35%.

In the fourth quarter of 2024, Bank of America Corporation (NYSE:BAC) posted revenue of $25.3 billion, an increase from $22 billion in the same quarter the previous year. Net income rose to $6.7 billion, up from $3.1 billion in the prior-year period. The bank also expanded its customer base by adding 213,000 new consumer checking accounts, continuing a six-year streak of quarterly growth. Moreover, it maintained its commitment to shareholders by distributing $2 billion in dividends.

Bank of America Corporation (NYSE:BAC) is a reliable option for income investors as the company holds a strong dividend distribution history, spanning over 27 years. The company currently pays a quarterly dividend of $0.26 per share and has a dividend yield of 2.22%, as of January 30.

The number of hedge funds tracked by Insider Monkey owning stakes in Bank of America Corporation (NYSE:BAC) grew to 98 in Q3 2024, from 92 in the previous quarter. These stakes are worth over $40.6 billion in total. With nearly 798 million shares, Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q3.