Bank of America Bullish on Blue-Chip Dividend Banks: 4 Strong Buy Stock Picks

One very positive item for investors when earnings season rolls around every quarter is that the big money center and investment banks are always among the first to report. This year was no different, as all of the big financials were out early and, for the most part, all delivered outstanding numbers. Like in all sectors, the tariffs weigh on sentiment and affect companies’ ability to provide forward guidance that they feel comfortable with. After the solid reports for the first quarter, if we get some tariff resolution, and some geopolitical sideshows quiet down, the rest of 2025 could be huge for the top blue-chip giants that the analysts at Bank of America are very bullish on.

While the BofA analysts are wary of the pitfalls that could face the top financial stocks for the rest of 2025, if the tariffs and the economy combine to provide headwinds to the sector, if things smooth out some, the top blue chips in the industry could produce some impressive total return numbers for growth and income investors. They noted this in their report:

Bank stocks will likely remain in the “sell the bounce” phase until investors can confidently see a reduced probability of a US recession. BofA’s Economics team still calls for positive GDP growth ~2% for 2025 and 2026. Healthy bank balance sheets, expectations for regulatory relief, a relatively resilient interest rate backdrop, and potential for improved clarity on tariff policy keep us positively biased. While bank stocks could remain rangebound and volatile over the coming months, we favor adding exposure to best-of-breed names.

We screened the list of strong buy stocks that BofA is positive on, and four of the highest-yielding picks are outstanding ideas now.

Why do we cover blue-chip dividend financial stocks?

Dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Goldman Sachs

Goldman Sachs Group Inc. (NYSE: GS) is an American multinational investment bank and financial services company. The white-glove banking giant offers industry-leading strength. It provides various financial services for corporations, financial institutions, governments, and individuals worldwide through three segments.

The Global Banking & Markets segment provides financial advisory services, including:

• Strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, and spin-offs
• Relationship lending, acquisition financing, and secured lending through structured credit and asset-backed lending and funding under securities-to-resale agreements.

This segment also offers client execution activities for cash and derivative instruments, credit and interest rate products, provision of mortgages, currencies, commodities, and equities-related products, as well as underwriting services.

The Asset & Wealth Management segment manages assets across various classes, including equity, fixed income, hedge funds, credit funds, private equity, real estate, currencies, and commodities.

It provides:

• Customized investment advisory solutions
• Wealth advisory services
• Personalized financial planning
• Private banking services
• Investments in corporate equity, credit, real estate, and infrastructure assets

The Platform Solutions segment offers credit cards and point-of-sale financing for the purchase of goods or services. It also provides cash management services, such as deposit-taking and payment solutions, for corporate and institutional clients.

The BofA stock price target is a stunning $700. Goldman Sachs is also on the firm’s US 1 list of top stock picks.

JPMorgan

JPMorgan Chase & Co. (NYSE: JPM) is the fifth-largest bank in the world by assets. Its stock trades at a reasonable 12.5 times estimated 2026 earnings. JPMorgan is one of the leading global financial services firms and one of the largest banking institutions in the United States, with about $3.9 trillion in assets. The company was formed by the merger of the Chase Manhattan retail banks and JP Morgan investment banks.

The company now operates through four segments. The Consumer & Community Banking segment offers:

• Deposit, investment, and lending products
• Cash management, payments, and services
• Mortgage origination and servicing activities
• Residential mortgages and home equity loans
• Credit cards, auto loans, leases, and travel services are offered to consumers and small businesses through bank branches, ATMs, and digital and telephone banking

The Corporate & Investment Bank segment provides:

• Investment banking products and services, including corporate strategy and structure advisory, and equity and debt market capital-raising services
• Loan origination and syndication, payments, cash and derivative instruments, risk management solutions, prime brokerage, and research

This segment also offers securities services, including custody, fund accounting and administration, and securities lending products for asset managers, insurance companies, and public and private investment funds.

The Commercial Banking segment provides financial solutions, including lending, payments, investment banking, and asset management to small and midsized companies, local governments, nonprofit clients, and large corporations, as well as investors, developers, and owners of multifamily, office, retail, industrial, and affordable housing properties.

The Asset & Wealth Management segment offers multi-asset investment management solutions in equities, fixed income, alternatives, and money market funds to institutional clients and retail investors; and retirement products and services, brokerage, custody, estate planning, lending, deposits, and investment management products to high-net-worth clients.

PNC Financial Services

This American bank holding company and financial services corporation is based in Pittsburgh, Pennsylvania. PNC Financial Services Group Inc. (NYSE: PNC) has a vast client base and is among the top 10 largest U.S. banks by assets. It operates through three segments.

The Retail Banking segment offers:

• Checking, savings, and money market accounts, as well as time deposits
• Residential mortgages, home equity loans, and lines of credit
• Auto loans, credit cards, education loans, and personal and small business loans and lines of credit
• Brokerage, insurance, investment, and cash management services

This segment serves consumer and small business customers through branches, digital channels, ATMs, and phone-based customer contact centers.

The Corporate & Institutional Banking segment provides:

• Secured and unsecured loans, letters of credit, and equipment leases
• Cash and investment management services
• Receivables and disbursement management services
• Funds transfer services
• International payment services
• Access to online/mobile information management and reporting
• Securities underwriting, loan syndications, and customer-related trading
• Mergers and acquisitions, equity capital markets advisory-related services
• Commercial loan servicing and technology solutions

It serves midsized and large corporations as well as government and not-for-profit entities.

The Asset Management Group segment offers:

• Investment and retirement planning, customized investment management, credit and cash management solutions, and trust management and administration services for high-net-worth and ultra-high-net-worth individuals and their families
• Multi-generational family planning services for ultra-high-net-worth individuals and their families

It provides outsourced chief investment officers, custody, private real estate, cash, fixed-income client solutions, and retirement plan fiduciary investment services for institutional clients.

BofA’s target price for the Buy-rated shares is $196.

Wells Fargo

Wells Fargo & Co. (NYSE: WFC) operates in 35 countries and serves over 70 million customers worldwide. This money-center giant makes sense for investors now, as many of the issues that have dogged the company over the past five years seem to be resolved. The financial services company offers a diverse range of banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally.

Its Consumer Banking and Lending segment offers diversified financial products and services for consumers and small businesses. These include checking and savings accounts, credit and debit cards, and home, auto, personal, and small business lending services.

The Commercial Banking segment provides financial solutions to private, family-owned, and specific public companies. Its products and services include banking and credit products across various industry sectors and municipalities, secured lending and lease products, and treasury management services.

The Corporate and Investment Banking segment offers a suite of capital markets, banking, and financial products and services, such as:

• Corporate banking
• Investment banking
• Treasury management
• Commercial real estate lending and servicing
• Equity and fixed-income solutions
• Sales, trading, and research capabilities services to corporate, commercial real estate, government, and institutional clients

The Wealth and Investment Management provides wealth management, brokerage, financial planning, lending, private banking, and trust and fiduciary products and services to affluent, high-net-worth, and ultra-high-net-worth clients.

It also operates through financial advisors in brokerage and wealth offices, consumer bank branches, independent offices, and digitally through WellsTrade and Intuitive Investor.

The BofA price target for the bank is set at $83.

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