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Is Banco Bradesco SA (NYSE:BBD) the Best High-Dividend Penny Stock to Buy Now?

Bank dividend stocks like JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC) and Citigroup Inc. (NYSE:C) are in the limelight amid rising interest rates and the market's overall hunger for steady dividends. Central banks have been actively increasing support for markets by allowing bank reserves to grow. This expansion in reserves increases the amount of money available for banks to invest in both the markets and the broader economy. This action essentially provides banks with more capital, enabling them to have greater resources to allocate toward investments in financial markets and lending to businesses and individuals.

Research conducted by Matt King, previously a strategist at Citigroup and now leading his independent research firm, Satori Insights, proposes a noteworthy shift in focus. Rather than concentrating on the Federal Reserve's reduction in its overall balance sheet, King highlights the paramount importance of understanding the considerable $500 billion surge in reserves within the U.S. banking system since January.

Photo by Viacheslav Bublyk on Unsplash

Banco Bradesco SA (NYSE:BBD)

Number of Hedge Fund Investors: 16

With a dividend yield of over 8% and a PE ratio that stands just over 9 as of May 14, Brazilian financial services company Banco Bradesco SA (NYSE:BBD) is one of the best high-dividend penny stocks to buy according to hedge funds. Earlier this month Banco Bradesco SA (NYSE:BBD) reported first quarter results, which showed that its revenue totaled R$28 billion, while net income from operations was R$4 billion.

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Insider Monkey's proprietary database of 933 hedge funds shows that 16 funds had stakes in the banking company as of the end of the last quarter of 2023. The most significant stake in Banco Bradesco SA (NYSE:BBD) is owned by Ken Fisher's Fisher Asset Management which had a $187 million stake in Banco Bradesco SA (NYSE:BBD). However, unlike JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC) and Citigroup Inc. (NYSE:C), BBD is a small company with low hedge fund sentiment.

Is Banco Bradesco SA (NYSE:BBD) Really The Best High-Dividend Penny Stock?

Insider Monkey’s research shows that Banco Bradesco is not the best high-dividend penny stock right now according to Insider Monkey’s research.

Click to see 10 Best High-Dividend Penny Stocks Better Than Banco Bradesco.

Disclosure: None.