As interest rates wallow at historic lows, many investors have been flocking to dividend stocks. Even massive blue-chip companies like Johnson & Johnson (NYSE: JNJ) have significantly outpaced the broader market as yield-hungry investors have bid up prices.
One sector that has been largely ignored by income-focused investors is the financial sector. With prices still depressed since the onset of the financial crisis, Wells Fargo (NYSE: WFC) is yielding over 3%, and JPMorgan Chase (NYSE: JPM) boasts a 2.9% annual dividend yield. In this video, Motley Fool banking analyst David Hanson tells investors why these two banks may be a safer bet than other stocks known for their dividends, as well as two other banks that could become solid dividend payers.
Can investors expect Bank of America to boost its dividend? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, Financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.