The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu discusses topics across the investing world.
Citigroup was denied in the latest round of stress tests. Its projections passed the tests except for its capital allocation plan. In other words, its plan to increase dividends and/or repurchase shares needs to go back to the drawing board. Anand explains why he thinks that's a good thing and how far away Citi is from being stable enough to raise dividends.
Anand Chokkavelu, CFA, owns shares of Bank of America and Citigroup Inc. The Motley Fool owns shares of Bank of America and Citigroup Inc. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.
More from The Motley Fool
Citigroup (C) Q4 2017 Earnings Conference Call Transcript
C earnings call for the period ending December 31, 2017.
Better Stock: Wells Fargo (WFC) vs. Citigroup (C)
The two banks have had plenty of ups and downs over the last decade or so. Here's the one I think has more "up" potential right now.
These Bank Bets Put Even Bitcoin to Shame
Find out why you have less than a year left to use some of these unusual investments.