Is Citigroup a Great Dividend Stock?
Dividends are a big consideration for many investors. Companies that issue dividends, which are typically distributed each quarter, are essentially taking part of their earnings and giving that portion directly back to shareholders. The banking sector is known for producing some attractive dividend yields that are great for investors who like to focus on passive income.
When evaluating a dividend stock, you want to look for dividends that offer a nice yield compared to other dividends and investments, as well as dividends that are steady, sustainable, and growing. With that in mind, let's take a look at Citigroup (NYSE: C) and see if it's a great dividend stock.
Citigroup is currently the third-largest bank in the U.S. with more than $2.2 trillion in total assets. Based on the bank's recent share price on March 5 of roughly $70 per share, and the bank's total dividend payments in 2020 of $2.04 per common share, Citigroup had a dividend yield of nearly 3%. Shares of Citigroup are trading lower than they did prior to the pandemic, and below tangible book value, so its dividend yield is a little higher than what it would be if the bank was valued more like the rest of the sector.
Source Fool.com
