Bank dividend stocks like JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC) and Citigroup Inc. (NYSE:C) are popular choices for investors seeking steady dividends in the current market environment. Central banks have been increasing support for markets by allowing bank reserves to grow, giving banks more capital to invest in the markets and the economy.
Research by Matt King, formerly of Citigroup and now with Satori Insights, points out the significant $500 billion surge in reserves in the U.S. banking system since January. This increase in reserves provides banks with more resources for investments and lending.
Banco Bradesco SA (NYSE:BBD), a Brazilian financial services company, offers a dividend yield of over 8% and a PE ratio just over 9 as of May 14. With first quarter revenue of R$28 billion and net income of R$4 billion, Banco Bradesco is considered one of the best high-dividend penny stocks by hedge funds. However, despite its attractive dividend yield, it has lower hedge fund sentiment compared to larger U.S. banks.
In conclusion, while Banco Bradesco offers a high dividend yield, it may not be the best high-dividend penny stock option currently available. Investors should consider other alternatives for potentially better returns.