8 Best Value Dividend Stocks to Invest in According to Warren Buffett

5. Bank of America Corporation (NYSE:BAC)

Forward P/E Ratio: 12.72

Bank of America Corporation (NYSE:BAC) is an American financial services company, based in North Carolina. The company offers a wide range of related services and products to its consumers. As of Q3 2024, the company represents about 12% of Berkshire Hathaway’s investment portfolio, making it the conglomerate’s third-largest holding. With a forward P/E ratio of 12.72, BAC is one of the best value stocks to buy according to Warren Buffett.

Bank of America Corporation (NYSE:BAC) benefits from significant competitive strengths that solidify its standing in the industry, shielding it from both traditional rivals and fintech challengers. Its expansive distribution network, which integrates a strong digital platform with an extensive branch system, helps the bank grow its low-cost deposit base and attract new customers, creating more revenue opportunities. In addition, its large scale supports efficient cost management, ensuring steady profitability. The bank’s reputable brand further enhances its appeal to both current and prospective customers.

In the fourth quarter of 2024, Bank of America Corporation (NYSE:BAC) reported revenue of $25.3 billion, up from $22 billion in the same period last year. The company’s net income for the quarter came in at $6.7 billion, growing from $3.1 billion in the prior-year period. It added 213,000 new consumer checking accounts, marking six consecutive years of quarterly growth. The company also remained committed to its shareholder obligation, returning $2 billion to investors through dividends.

Bank of America Corporation (NYSE:BAC) is a strong dividend payer as the company has maintained its dividend distribution for 27 consecutive years. The company currently offers a quarterly dividend of $0.26 per share and has a dividend yield of 2.22%, as of January 28.

Insider Monkey’s database of Q3 2024 indicated that 98 hedge funds owned stakes in Bank of America Corporation (NYSE:BAC), up from 92 in the preceding quarter. These stakes are valued at more than $40.6 billion in total.