5 banks that pay “strong buy” dividends – 24/7 Wall St.

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The stock market is on a roll as interest rates soar because a huge increase would be dangerous for certain sectors. The Federal Reserve will begin raising rates in March and accelerate the tapering of the quantitative easing program faster than expected. After a horrific Consumer Price Index report for January, the question will remain as to how much the initial rate hike will be, as well as how many will follow.

One industry that loves higher interest rates is banking. When interest rates are higher, banks make more money by profiting from the difference between the interest they pay to customers and the interest they earn by investing.

We scoured our 24/7 research database on Wall St. for Buy-rated bank stocks that also pay the highest dividends. When you combine the benefits of rising interest rates and an economy that opens up and improves, the banking sector could be on the verge of an outsized total return. It is important to remember that no single analyst report should be used as the sole basis for any buy or sell decision.

Citigroup

This top banking stock has rallied nicely from lows, but looks set to rise in 2022, and it’s still trading well below the 52-week high. Citigroup Inc. (NYSE: C) is a leading global diversified financial services company that provides consumers, businesses and governments with a broad range of financial products and services.

Citigroup offers services such as consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management. It operates and does business in more than 160 countries and jurisdictions in North America, Latin America, Asia and elsewhere.

Trading at a still very cheap price of 8.98 times estimated 2022 earnings, the stock looks very reasonable in what remains a volatile stock market and in a sector that has lagged significantly behind.

Investors in Citigroup shares receive a dividend of 3.02%. Oppenheimer’s $114 price target is a Wall Street high. The consensus target price is $78.89 and the shares closed Thursday trading at $67.50.

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