The Case for Big Bank Stocks in Your Retirement Account

Updated

As interest rates wallow at historic lows, many investors have been flocking to dividend stocks. Even massive blue-chip companies like Johnson & Johnson 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 is yielding over 3%, and JPMorgan Chase 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.

The article The Case for Big Bank Stocks in Your Retirement Account originally appeared on Fool.com.

David Hanson has no position in any stocks mentioned. You can follow David on Twitter. The Motley Fool recommends Johnson & Johnson and Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, Johnson & Johnson, JPMorgan Chase, and Wells Fargo. 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.

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