Forget Bank of America Corporation: Here Are 4 Better Dividend Stocks

These four options have all the dividend you need, without Bank of America's baggage.



The qualities of a top-notch bank stock dividend aren't all that complicated. Investors just need a decent yield, a bank with a strong capital base, good earnings, and a realistic payout ratio. And for large banks, the strong hand of the regulators largely takes care of the capital base and payout ratio concerns.

Yet despite such a simple formula, many banks fall short, among them Charlotte, N.C.-based Bank of America (NYSE: BAC). Bank of America's dividend yield today is just 1.32%. On a trailing-12-month basis, the bank's return on equity is just 6.65%, well below the industry average and its national peers. Its capital position is strong today, but it's hard to forget that today's capital was built via massive shareholder dilution during the financial crisis.

All is not lost, however. There are plenty of suitable bank stocks with excellent dividends to round out your portfolio, each that meet all of our requirements. TD Bank (NYSE: TD) and its 3.52% dividend yield is one, for example. So is JPMorgan Chase (NYSE: JPM) and it's 2.78% yield. There are even large regional banks that could be the good fit for you, like the 3.17% and 2.32% yields available from BB&T (NYSE: BBT) and PNC Financial Services Group (NYSE: PNC), respectively.


Four banks with a better dividend profile than Bank of America…


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