Best Bank Stocks for Investors

Despite the aging bull market, bank stocks still hold value.

Although bank stocks are known for dividends and a solid performance in a rising interest rate environment, it’s still a challenge to find the best bank stocks in this market. If you want exposure to the financials market segment — and a dependable dividend payment — these six bank stocks are worth a look.

Do your own due diligence before you invest in any stock. Check out these six bank stocks that include riskier choices for those who like to gamble as well as safe bets for investors averse to risk.

1. Citigroup Inc. (C)

  • Price: $68.355
  • 52-Week High: $69.65
  • 52-Week Low: $43.66
  • Dividend: 1.15 percent
  • Yield: 0.80 percent

Citigroup stock claims an 11 percent share of bank sector stocks. The well-known brand offers banking services to retail, wholesale and corporate customers in the U.S. and abroad.

The 1.15 percent dividend payment and recurring share buybacks are two reasons to include Citigroup on the best bank stocks list. In addition, Citigroup was the best-performing big bank stock in July 2017. Note that share repurchases tend to increase the value of each underlying share of stock.

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Find Out: Smart and Stable Stocks to Invest in During the Trump Administration

2. Bank of America Corporation (BAC)

  • Price: $24.52
  • 52-Week High: $25.80
  • 52-Week Low: $14.36
  • Dividend: 1.9 percent
  • Yield: 0.48 percent

You can access this popular big bank through 4,600 financial centers, 15,900 ATMs, a number of call centers, and online and mobile platforms. Bank of America and its subsidiaries serve individuals, businesses, institutional investors, large corporations and governments in the U.S. and internationally.

Bank of America stock, with a respectable 1.96 percent dividend yield, might be one of the best bank stocks to buy now — and you’ll likely earn a greater return by investing in BAC than by keeping your money in the bank. Similar to Citigroup, Bank of America is planning share buybacks and increased dividend payments.

Positive Signs: What the Good News About Top Banks Stocks Means for Your Portfolio

3. JPMorgan Chase & Co. (JPM)

  • Price: $93.75
  • 52-Week High: $94.51
  • 52-Week Low: $64.86
  • Dividend: 2.15 percent
  • Yield: 2 percent

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JPMorgan Chase and Co. operates worldwide and offers an extensive range of consumer, commercial and government banking services to millions of consumers worldwide. Chase Bank stock is currently offering dividend increases and stock repurchases. In addition, Chase is an undervalued and financially healthy company, according to S&P Capital IQ, a company that researches public and private capital markets.

Find Out: Why Dividend Stocks Are Great for Beginner Investors

4. Wells Fargo & Company (WFC)

  • Price: $53.37
  • 52-Week High: $59.99
  • 52-Week Low: $43.55
  • Dividend: 2.88 percent
  • Yield: 1.56 percent

Wells Fargo made the list of bank stocks to buy because it holds 18.2 percent of the banking market. The bank dates back to 1852, and today the diversified financial services company offers retail, commercial and corporate banking to individuals, businesses and institutions.

Along with other Wells Fargo tech offerings, the bank recently unveiled the new “Control Tower,” a digital banking solution designed to provide users with a central location where they can conduct all their financial activities.

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5. U.S. Bancorp (USB)

  • Price: $53.12
  • 52-Week High: $56.61
  • 52-Week Low: $42.17
  • Dividend: 2.11 percent
  • Yield: 1.12 percent

Another venerable financial institution, USB was founded in 1863. Unlike some of its larger peers, USB operates solely in the U.S.

The bank offers a range of financial products, and its mantra is “trust,” which CEO Richard K. Davis highlighted in the 2016 corporate annual letter. “Do the right thing and re-earn their trust today. It’s a formula that will never change at U.S. Bank,” wrote Davis.

See: Best Short-Term Investment Options

6. New York Community Bancorp (NYCB)

  • Price: $12.88
  • 52-Week High: $17.68
  • 52-Week Low: $12.61
  • Dividend: 5.17 percent
  • Yield: 0.68 percent

A holding company for New York Community Bank and New York Commercial Bank, NYCB offers banking products and services in New York, New Jersey, Ohio, Florida and Arizona. The bank has 225 community branches, 30 commercial branches and 271 ATMs.

NYCB hit recent roadblocks during an unsuccessful merger with Astoria Financial. Although this bank stock is somewhat riskier than the others on this list, it might offer greater upside potential.

Read This: 10 Best Penny Stocks for Investors Who Love Risk

Best Bank Stocks to Buy Now

With markets hitting their peaks, honing investment strategies today isn’t an easy task. If you want to round out your financial sector investments, however, bank stocks might fit the bill. Most of these bank companies have been in business for decades and offer broadly diversified financial solutions.

Up Next: 9 Safe Stocks for First-Time Investors

Methodology: GOBankingRates assessed information about the best bank stocks, including sourcing information from the financial institution provider websites as of Aug. 4, 2017. To comprise this list of the best bank stocks to invest in, GOBankingRates considered the following factors: (1) stock price; (2) 52-week high and low; and (3) dividend and yield.

Editorial Note: This content is not provided or commissioned by the bank advertiser. Opinions expressed here are author’s alone, not those of the bank advertiser, and have not been reviewed, approved or otherwise endorsed by the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.

About the Author

Barbara Friedberg

Barbara A. Friedberg, MBA, MS, brings decades of finance and investing experience. She has a Bachelor of Science degree in economics from the University of Cincinnati, a Master of Science degree in administration and counseling from Miami University, and a Master of Business Administration degree in finance from Penn State University. Her work has been featured in U.S. News & World Report, Investopedia, Yahoo! Finance, GOBankingRates, InvestorPlace and many more publications.

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