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

2. Citigroup Inc. (NYSE:C)

Forward P/E Ratio: 10.81

Citigroup Inc. (NYSE:C) is a New York-based multinational investment bank and financial services company with operations in nearly 180 countries and jurisdictions. In FY24, the company reported a nearly 40% increase in net income, reaching $12.7 billion, surpassing its full-year revenue target. This included record performances in Services, Wealth, and US Personal Banking. Expenses were kept within the company’s guidance, and it successfully improved its efficiency ratio while completing a major reorganization of the firm. Its revenue for the year came in at $81.1 billion, which showed a 3% growth from the previous year.

Citigroup Inc. (NYSE:C) is undergoing a multi-year restructuring, selling off complex business units and narrowing its focus to areas where it can at least cover its cost of capital. Over the past three years, the company has made considerable progress in improving its risk management, compliance, and accountability. In the past 12 months, the stock has surged by nearly 48%.

In addition to its operational efficiency, Citigroup Inc. (NYSE:C) is a strong dividend payer and has remained committed to returning value to shareholders. In 2024, the company paid $6.7 billion to investors through dividends and share repurchases. The company’s dividends appear safe because of its payout ratio of 58%. Moreover, it has been paying regular dividends to shareholders for the past 34 years. The company offers a quarterly dividend of $0.56 per share and has a dividend yield of 2.80%, as of January 28.

According to Insider Monkey’s database of Q3 2024, 88 hedge funds, up from 85 in the previous quarter, held stakes in Citigroup Inc. (NYSE:C). The consolidated value of these stakes is over $10.8 billion. With nearly 17 million shares, Greenhaven Associates was one of the company’s leading stakeholders in Q3.