What is a good dividend yield for a bank?

There's no cutoff between a "good" and "bad" dividend yield. But ideally, a bank will pay a dividend yield that is higher than the S&P 500 average, is sustainable, and has a solid track record of growth over time.

How often do bank stocks pay dividends?

Most dividend-paying bank stocks have a quarterly dividend schedule, meaning that they pay four times per year. However, this isn't a universal rule, and some (especially those based outside of the U.S.) may have a semi-annual or annual dividend cadence.

Are bank shares a good long-term investment?

To be sure, banks have had their share of turbulent times, and it's very important to choose high-quality banks and make sure they're part of a diverse portfolio. Having said that, some of the bank stocks on this list have solid track records of outperforming the market over long periods.

Is Bank of America a good dividend stock?

Bank of America pays an above-average dividend yield that is well covered by its net income. However, there's a lot that makes a stock a "good" dividend stock, and even more to consider when deciding if it's a good dividend stock for you.

How can I track upcoming dividend payments for bank stocks?

There are a couple of ways to track upcoming dividend payments. Publicly traded companies often issue press releases when they declare a dividend. Alternatively, your brokerage or investing app can be a great resource with things like upcoming dividend payment dates.

Can I reinvest dividends from bank stocks?

Bank stock dividends are generally eligible for automatic reinvestment plans, which you can enroll in through your brokerage or investment app.

Best Bank Stocks for Dividends in 2026 and How to Invest

Here are some of our favorite bank stocks for both income and growth.

By Matthew Frankel, CFP – Updated Apr 21, 2026 at 1:25 PM EST | Fact-checked by Frank Bass

Key Points

Well-run banks provide reliable dividends, attractive to investors like Warren Buffett.
Bank of America improved post-2008 crisis, offers dividends above S&P 500 average.
Butterfield serves wealthy clients, yields 3.6% dividends with a reliable payout ratio.

Most major bank stocks pay dividends since the industry is conducive to strong margins and consistent cash flow. However, banking practices both drive and can be affected by boom-and-bust cycles, and not all bank stocks pay dividends in both good times and bad.

That said, dividend investors shouldn't completely disregard investing in bank stocks for dividend income. There is a lot to like about the banking business, and it's no surprise that legendary investor Warren Buffett has billions of dollars invested in bank stocks. Well-run banks can and do deliver strong and reliable dividend income.

X top Bank stocks for Dividends in 2026

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
American Express (NYSE:AXP)	$213.3 billion	1.09%	Consumer Finance
Bank of America (NYSE:BAC)	$362.6 billion	2.15%	Banks
Bank Of N.t. Butterfield & Son (NYSE:NTB)	$2.2 billion	3.55%	Banks
JPMorgan Chase (NYSE:JPM)	$801.9 billion	1.97%	Banks
Goldman Sachs Group (NYSE:GS)	$294.0 billion	1.56%	Capital Markets

Data as of May 28, 2026. Showing 5 of 5 total entries.

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1. American Express

NYSE: AXP

American Express

Today's Change

(0.62%) $1.94

Current Price

$312.65

Key Data Points

Market Cap

$213B

Day's Range

$311.68 - $317.39

52wk Range

$286.15 - $387.49

Volume

157.8K

Avg Vol

3.4M

Gross Margin

60.19%

Dividend Yield

1.09%

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American Express probably doesn't come to mind for many investors as a bank. The company is much better known as a provider of credit and debit cards. But while competitors Visa (V +0.35%) and Mastercard (MA +0.41%) operate open payment networks by partnering with banks to issue payment cards and lend money, the American Express payment network is a closed loop, meaning it is both a payment network operator and a lender. The U.S. Federal Reserve considers it a bank holding company.

American Express makes this list of best dividend-paying bank stocks because it has a long track record of delivering robust returns, in part because its dividend is both generous and reliable. The returns delivered by American Express over the past three decades have dwarfed those of the broader market.

Perhaps surprisingly, American Express' dividend yield (the dividend paid per share divided by the stock price) has been rather low for much of its history. As of April 2026, it's approximately 1.2%. However, the consistent and substantial rise in its stock price has led to a steady increase in the absolute value of its dividend, which is likely to continue in the years ahead.

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2. Bank of America

NYSE: BAC

Bank of America

Today's Change

(-2.11%) $-1.10

Current Price

$51.10

Key Data Points

Market Cap

$363B

Day's Range

$50.76 - $52.49

52wk Range

$43.36 - $57.55

Volume

48.6M

Avg Vol

37.5M

Dividend Yield

2.15%

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About 15 years ago, Bank of America was one of the most hated banks in the U.S. During and in the years following the 2008 global financial crisis, few companies were as closely associated with questionable lending practices, predatory lending, and outright deception as the megabank and its subsidiaries. But fast-forward to today, and Bank of America, under CEO Brian Moynihan (who took the helm in 2010), has dramatically improved its reputation.

Bank of America has consistently increased its dividend payments over the past decade, and its recent dividend yield of 2.1% exceeds the average S&P 500 dividend yield. Bank of America claims to be focused on creating the future of banking. It also has a strong balance sheet and ready access to low-cost capital, making it a possible fit for any dividend-focused investor.

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3. Bank of N.T. Butterfield & Son

NYSE: NTB

Bank Of N.t. Butterfield & Son

Today's Change

(-0.70%) $-0.40

Current Price

$56.31

Key Data Points

Market Cap

$2.2B

Day's Range

$55.95 - $56.91

52wk Range

$40.59 - $57.84

Volume

139.1K

Avg Vol

166K

Dividend Yield

3.55%

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Instead of catering to Main Street, Butterfield is an offshore bank that serves high-net-worth individuals. It has physical locations in Bermuda, the Cayman Islands, and the Channel Islands. The Butterfield brand is one of the oldest in offshore banking, with a history spanning more than a century, though it became a public company only in 2016.

Dividend investors should be aware of two key points about Butterfield. First, serving high-wealth individuals and those with international banking needs can be highly profitable. Second, Butterfield is highly profitable. It collects interest income from its traditional banking products and an increasing amount of fee income from customers. Butterfield's business model is likely to continue growing its profits over time, regardless of interest rate movements.

Using recent stock prices, Butterfield's dividend yield is 3.6%, the highest on this list. While Butterfield's dividend is generally reliable, the company's payout ratio (the dividend paid as a percentage of profits) is only about 36%, which is healthy but slightly low for dividend-focused investors. In a nutshell, investing in Butterfield is a great way to gain concentrated exposure to offshore banking and collect dividends from a high-yield stock.

4. JPMorgan Chase

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NYSE: JPM

JPMorgan Chase

Today's Change

(-2.43%) $-7.46

Current Price

$299.28

Key Data Points

Market Cap

$802B

Day's Range

$295.75 - $305.90

52wk Range

$260.31 - $337.25

Volume

11.8M

Avg Vol

9.3M

Dividend Yield

1.97%

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Like Bank of America, JPMorgan Chase is another of the "Big Four" U.S. megabanks. Ranking as the nation's largest bank by asset value, the financial institution has delivered strong returns to investors since emerging from the 2008 financial crisis. Despite several rough periods for the banking sector, JPMorgan Chase's stock has still outperformed the S&P 500 over the past decade.

Since the end of the 2008 financial crisis, JPMorgan Chase has increased its dividend 29-fold, which has played a significant role in its performance, as shown in the chart above. Management and the company's board of directors have been increasingly prioritizing the return of profits to investors for many years.

As of April 2026, JPMorgan's per-share dividend was 1.9% of its stock price, and its total dividend was less than 30% of its profits. The dividend strategy is intentional, and CEO Jamie Dimon has described the company's dividend as "completely sustainable." Investing in JPMorgan stock carries some risk, of course. But this is a rock-solid financial institution that should remain an industry leader for years to come.

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5. Goldman Sachs

NYSE: GS

Goldman Sachs Group

Today's Change

(0.20%) $1.95

Current Price

$996.47

Key Data Points

Market Cap

$294B

Day's Range

$974.42 - $1003.65

52wk Range

$592.17 - $1016.53

Volume

2.2M

Avg Vol

2.1M

Dividend Yield

1.56%

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Goldman Sachs has historically not been the highest-paying bank stock, or even close to it, but the investment banking giant has emphasized dividend increases in recent years, and it now has a dividend yield of about 2% -- on par with other large U.S. banks.

Goldman has some traditional banking operations, but it has largely exited the consumer banking space over the past couple of years. Instead, Goldman generates most of its revenue from investment banking and trading (fee-based) revenue.

One important consideration is that these services can perform well even in challenging environments. Investment banking advisory services, which include mergers and acquisitions and equity underwriting, tend to perform well in strong economies. On the other hand, trading revenue tends to spike in volatile, uncertain times, positioning Goldman to remain highly profitable regardless of the circumstances.

How to invest in dividend-paying bank stocks

The process for investing in dividend-paying bank stocks is a pretty straightforward one:

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Determine the number of shares to purchase: Consider your investment objectives and the percentage of your portfolio you wish to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in dividend-paying bank stocks

Investing in dividend-paying bank stocks can be an excellent way to generate income and build wealth. Banks can be highly profitable businesses, especially when the economy is strong, and they can be excellent total return investments to hold for the long term.

However, there are some potential drawbacks to consider:

Bank stocks are rather cyclical, and their profits (and ability to pay dividends) can be squeezed during tough times.
The banking industry itself is prone to panics, even in the absence of a recession. We saw this as recently as mid-2023.
Bank profits can be sensitive to interest rate fluctuations, as this can affect the margin between loan yields and deposit costs.

The bottom line

While the banking industry can be highly cyclical, the top banks are generally resilient and almost always reward patient investors. Dividend-paying companies -- even those operating in cyclical industries -- are positioned to produce enormous long-term gains for their investors. Even considering the risks, you can likely boost your portfolio's overall returns by including some of these top dividend-paying bank stocks in your dividend stocks portfolio.

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FAQ

Bank stocks FAQ

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst specializing in the real estate and financial sectors. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, Globe St, The National Desk, and other TV networks and publications for his real estate, financial, stock market, and investing expertise.

TMFMattFrankel

@MattFrankelCFP

Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Matt Frankel, CFP has positions in American Express and Bank of America. The Motley Fool has positions in and recommends Goldman Sachs Group, JPMorgan Chase, Mastercard, and Visa. The Motley Fool recommends Bank Of N.t. Butterfield & Son. The Motley Fool has a disclosure policy.

Best Bank Stocks for Dividends in 2026 and How to Invest

Here are some of our favorite bank stocks for both income and growth.

Key Points

X top Bank stocks for Dividends in 2026

1. American Express

Key Data Points

2. Bank of America

Key Data Points

3. Bank of N.T. Butterfield & Son

Key Data Points

4. JPMorgan Chase

Key Data Points

5. Goldman Sachs

Key Data Points

How to invest in dividend-paying bank stocks

Benefits and risks of investing in dividend-paying bank stocks

The bottom line

Related investing topics

Best Growth Stocks to Buy in 2026

Best Buy Now, Pay Later (BNPL) Stocks to Buy in 2026

Best Income Stocks for Passive Income

Are Bank Stocks Safe? The Pros and Cons

FAQ

Bank stocks FAQ

What is a good dividend yield for a bank?

What is a good dividend yield for a bank?

How often do bank stocks pay dividends?

How often do bank stocks pay dividends?

Are bank shares a good long-term investment?

Are bank shares a good long-term investment?

Is Bank of America a good dividend stock?

Is Bank of America a good dividend stock?

How can I track upcoming dividend payments for bank stocks?

How can I track upcoming dividend payments for bank stocks?

Can I reinvest dividends from bank stocks?

Can I reinvest dividends from bank stocks?

About the Author

Read Next

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Premium Investing Services

X top Bank stocks for Dividends in 2026

Key Data Points

Key Data Points

4. JPMorgan Chase

Key Data Points

Key Data Points

How to invest in dividend-paying bank stocks

Benefits and risks of investing in dividend-paying bank stocks

The bottom line

Best Growth Stocks to Buy in 2026

Best Buy Now, Pay Later (BNPL) Stocks to Buy in 2026

Best Income Stocks for Passive Income

Are Bank Stocks Safe? The Pros and Cons

Bank stocks FAQ

What is a good dividend yield for a bank?

What is a good dividend yield for a bank?

How often do bank stocks pay dividends?

How often do bank stocks pay dividends?

Are bank shares a good long-term investment?

Are bank shares a good long-term investment?

Is Bank of America a good dividend stock?

Is Bank of America a good dividend stock?

How can I track upcoming dividend payments for bank stocks?

How can I track upcoming dividend payments for bank stocks?

Can I reinvest dividends from bank stocks?

Can I reinvest dividends from bank stocks?

Key Data Points