Citigroup (C) stock has a dividend yield of nearly 3.4%, which is not only over twice what the average S&P 500 Index ($SPX) constituent pays, but is also ahead of its banking peers like Bank of America (BAC) and JPMorgan Chase (JPM), which yield below 2.5%. While bank stocks generally have a higher dividend yield, Citi specifically stands out for its fat payouts.
Along with the current dividend yield, investors should also be mindful of the future growth in dividends – not to mention the expected growth in capital. A lot of stocks with high dividend yields turn out to be duds when it comes to price appreciation, and end up underperforming the markets after accounting for total returns.
