JPMorgan Chase (NYSE:JPM) is known for many things. It's named after one of the scions of U.S. banking, it's the biggest bank in America measured by assets, and, most importantly for our purposes, it pays a generous and growing dividend.

It's for this last reason in particular that Motley Fool contributor John Maxfield believes the banking giant is one of the best dividend stocks to buy today.

In the first case, its 2.7% yield easily outpaces the general market, measured by the S&P 500's 1.96% yield. Additionally, it distributes only 31% of its earnings to shareholders each quarter, meaning there's plenty of room left for its dividend to grow -- this is assuming, of course, that the Federal Reserve allows it to do so. Finally, while JPMorgan cut its quarterly dividend in the midst of the financial crisis, it's now in the process of rebuilding its distribution to keep pace with its massively profitable operations.

As John explains, these factors arguably make JPMorgan a great addition to any dividend portfolio.

Big banking's little $20.8 trillion secret
There's a brand-new company that's revolutionizing banking, and is poised to kill the hated traditional brick-and-mortar banks. That's bad for them, but great for investors. And amazingly, despite its rapid growth, this company is still flying under Wall Street's radar. To learn about about this company, click here to access our new special free report.

John Maxfield has no position in any stocks mentioned. The Motley Fool owns shares of JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Compare Brokers