Bank of America Corp (BAC), JPMorgan Chase & Co. (JPM): Should You Buy This Mega-Bank?

This token payout pales in comparison to what other banks offer their shareholders.

Impressively, Wells Fargo has raised its dividend in two consecutive quarters. The company yields 3%, and its annual dividend payment is up 36% from its payout level one year ago.

Likewise, JPMorgan Chase & Co. (NYSE:JPM) is back to paying shareholders a healthy dividend, which yields nearly 3% at recent prices.

Better opportunities among the banks

Bank of America Corp (NYSE:BAC) is slowly healing its business and returning to profitability. However, massive legal expenses continue to be a major drag on growth, which is reverberating through to shareholders in the form of puny dividends.

Wells Fargo & Co (NYSE:WFC) and JPMorgan Chase & Co. (NYSE:JPM), meanwhile, are posting record operating results and in turn, ratcheting up their shareholder rewards.

As a result, while Bank of America Corp (NYSE:BAC) may prove to be a long-term winner, there are better opportunities to be had today among bank stocks. Therefore, I’d recommend investors give Wells Fargo and JPMorgan Chase & Co. (NYSE:JPM) preference.

The article Should You Buy This Mega-Bank? originally appeared on Fool.com.

Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America, JPMorgan Chase & Co (NYSE:JPM)., and Wells Fargo. Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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