#1 - Bank of America (NYSE:BAC)
Leading off this list of attractive dividend stocks under $50 is Bank of America (NYSE: BAC). Financial stocks are expected to get a boost from looser monetary policy. This is why many investors may be confused by Warren Buffett’s decision to dump a significant amount of BAC shares in late July.
However, every investor, even Warren Buffett, has many reasons to sell a stock. And Buffett’s hedge fund, Berkshire Hathaway Inc. (NYSE: BRK.B), still owns over 940 million BAC shares, which is over 12% of the shares outstanding.
And there are good reasons for that. Bank of America remains one of the nation’s healthiest banks despite underperforming, but passing, the last round of the Federal Reserve’s stress tests. Ironically, the tests showed that BAC may have to increase its cash buffer at the expense of dividends and buybacks. Yet, in its most recent quarter, the bank increased its dividend by 8% and the board of directors authorized a new $25 billion stock buyback program that became effective August 1, 2024.
About Bank of America
Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.
Read More - Current Price
- $46.06
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 15 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $44.26 (3.9% Downside)
