The stock market is in flux as interest rates are rising. While a massive increase would be dangerous for some sectors, the reality is that it looks like the Fed will start raising interest rates this year and will accelerate the rollback of its quantitative easing program much faster than previously anticipated.
One industry that likes higher interest rates is banking. When interest rates are higher, banks make more money, by taking advantage of the difference between the interest that banks pay to customers and the interest that banks can earn through investing.
We checked our Wall Street database 24/7 for bank stocks rated “buy” that also pay the highest dividend. When you combine the positives of higher interest rates and an opening and improving economy, bank stocks can poised for some huge total returns.
It is important to remember that no single analyst report should be used as the sole basis for any buying or selling decision.
The shares of this top bank rose from their lowest levels, but they seem poised to rise significantly this year. Citigroup Inc (NYSE: C) is a leading global diversified financial services company that provides clients, businesses and governments with a broad range of financial products and services.
Citigroup offers services such as retail banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management. It operates and does business in more than 160 countries and jurisdictions in North America, Latin America, Asia and elsewhere.
Trading at a still very cheap 8.7 times estimated 2022 earnings, this stock looks very reasonable in what remains a volatile stock market and in a massively underdeveloped sector.
Citigroup stock investors will receive a dividend of 3.25%. The Credit Suisse team has a price target of $76, and an agreed target of $81.74. The shares closed trading on Thursday at 64.91 dollars.
This is still the best financial choice across Wall Street. Citizens Financial Group Inc. (NYSE: CFG) has approximately 2,700 ATMs and 1,000 branches in 11 states in the New England, Mid-Atlantic and Midwest regions, as well as through Internet, telephone and mobile banking, and has approximately 130 stores For retail and non-branch offices.