#10: JPMorgan Chase
Current Dividend Yield: 3.2%
Performance So Far in 2012: +12%
JPMorgan Chase (NYSE:JPM) might be slightly ahead of the Dow’s 8% gains year-to-date, but it’s off nearly 20% from its peak earlier this year. The reason for the rollback should be obvious — the “London Whale” loss that ultimately shaved $4 billion off earnings, and continued scandal in the financial industry.
While the recent declines make sense, however, the longer-term recovery in JPM during the past few years also makes sense too. The business is arguably the strongest of the major banks and pays a juicy dividend. 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. That’s not to say Ben Bernanke and others at the Fed are geniuses, but it’s a vote of confidence for JPM.
If you’re a long-term investor, you might want to consider JPM stock. Although financials are understandably a lightning rod for politicians and investors alike, the bottom line is that any broader recovery cannot happen without financials coming along for the ride.