#2 - Bank of America (NYSE:BAC)
Bank of America (NYSE: BAC) - When retirees are thinking about safe ports in which to dock their retirement savings, a bank that was synonymous with the financial crisis of 2008 would not be their first choice. But a closer look at Bank of America shows a company that has weathered a difficult storm and now looks poised to benefit from rising interest rates and an outlook for continued economic growth. For starters, in their second-quarter earnings report, the bank cited net consumer charge-offs at low levels not seen since before the financial crisis. Their performance on credit metrics also continues to improve which is a sign of a company that's learned its lessons. Their investment unit Merrill Lynch has record margins. A dividend yield of 1.9% may not excite investors, nor will the idea of investing in a heavily regulated industry. However, the government regulations exist for all banking stocks, and BAC can still point to the fact that no less than Warren Buffett's Berkshire Hathaway Inc. is its largest shareholder. That's a pretty strong vote of confidence.
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
- $46.55
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 15 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $44.26 (4.9% Downside)
