#8: JPMorgan Chase
Current Dividend Yield: 3.4%
Performance So Far in 2012: +4%
JPMorgan Chase (NYSE:JPM) might be tracking the market year-to-date, but it’s off nearly 25% from its spring peak. That’s because of a host of ugly headlines, including initial news in May of a disastrous JPM trading loss that ultimately shaved $4 billion off of earnings. Bigwig Jamie Dimon even got a summons to Capitol Hill to take a whipping from Congress and supporters of the Volcker Rule.
But the stock still is hanging tough, boasts a great yield and is the largest American bank by assets.
On the dividend side, JPM was granted Federal Reserve permission to raise its dividend in March, even as competitors like Citigroup (NYSE:C) and Bank of America (NYSE:BAC) have failed to improve their payouts beyond a nominal penny per quarter in dividends. You can bet that Ben Bernanke and others at the Fed wouldn’t have allowed JPM to boost its payout if it wasn’t sustainable. And on the profits side, JPM still is tracking earnings growth of more than 20% this fiscal year even after the trading loss. As Dan Burrows recently noted in an earnings recap, JPMorgan has a cold — not pneumonia.
If you’re a long-term investor, you might want to consider JPM stock.