Wells Fargo & Co (WFC), JPMorgan Chase & Co. (JPM) & Citigroup Inc (C): These Three Banking Giants Cannot Be Stopped!

First, with respect to JPMorgan and Wells Fargo & Co (NYSE:WFC), investors are being compensated in the form of strong dividend yields. After recently ratcheting up their shareholder distributions, both Wells Fargo & Co (NYSE:WFC) JPMorgan outpace the broader market in terms of dividend yield. To illustrate, whereas the S&P 500 Index as a whole yields about 2%, both banks offer yields of approximately 2.75% at recent prices.

Moreover, and this is where I’d give an edge to Citigroup Inc (NYSE:C), these stocks are cheap when analyzed in the context of book value.

In its quarterly earnings report, Citigroup revealed its book value per share rose to $63.02, meaning new investors are still paying just 0.82 times book value for the company. JPMorgan is also cheap on this metric, trading at book value.

More conservative investors who may favor stronger dividend payouts should pick JPMorgan and Wells Fargo & Co (NYSE:WFC), two strong banks with reliable growth and dividend yields that significantly outpace the yield on the broader market.

On the other hand, investors with an appetite for risk who don’t consider dividend yield to be a requirement for investment, should pick Citigroup Inc (NYSE:C). Its significantly discounted valuation, and as a result stronger capital gains potential, may prove more valuable to some investors.  The bank still pays just a token dividend, which won’t give you the downside protection of a strong dividend yield, but Citigroup is growing earnings faster than its two rivals.

In the end, there’s an investing case to be made for each of these stocks, and investors intent on profiting alongside the nation’s biggest financial institutions should consider buying JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo, and Citigroup Inc (NYSE:C).

The article These 3 Banking Giants Cannot Be Stopped! originally appeared on Fool.com and is written by Robert Ciura.

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

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.