Dividend investing is a powerful way to build wealth and financial security.If you're interested in adding more dividend-paying stocks to your portfolio, that's a fine idea. For one thing, dividend payers tend to be more established and reliable growers, since they have reached a point where management is confident it can commit to a regular payout to shareholders. Better still, dividend-paying stocks tend to outperform non-payers!For example, a study by Hartford Funds and Ned Davis Research found that from ...

Citigroup Inc. (C) has agreed to divest its global fiduciary and trust administration services business, Citi Trust, to JTC, one of the global professional services providers, for $80 million. This strategic move aligns with the bank’s focus on concentrating resources in areas that drive growth in its wealth business.Citi Trust, known for its comprehensive trust solutions across seven key jurisdictions like New York, Delaware, South Dakota, Jersey, Singapore, Switzerland and the Bahamas, serves over 2,000 u ...

Core Viewpoint - Citigroup Inc. has experienced a significant stock decline of 5.9% over the past month, underperforming compared to the industry and the S&P 500 index, raising questions among investors about the timing of potential investments [1][2]. Regulatory Scrutiny and Compliance Issues - Citigroup is currently facing increased regulatory scrutiny, having breached the Federal Reserve's Regulation W, which has led to discrepancies in its internal liquidity reporting [2] - The company was fined $136 million by U.S. bank regulators in July for insufficient progress in addressing data management issues [2]. Credit Losses and Financial Projections - The company is experiencing rising credit losses as U.S. consumers shift spending towards essential needs, with projections for net credit losses in 2024 estimated at 3.5-4% for branded cards and 5.75-6.25% for retail services [3] - The anticipated cost of credit for the company is projected to be $2.7 billion [3]. Organizational Overhaul and Cost Reduction - Citigroup is undergoing a comprehensive organizational overhaul aimed at improving performance, reducing costs, and simplifying its business structure, which includes a reduction in management layers from 13 to 8 [4][5]. - The company plans to reduce its workforce by 20,000 over the next two years to enhance operational efficiency [5]. Strategic Focus and Market Exits - The bank is focusing on core operations by streamlining international operations and has exited consumer banking businesses in several markets, including Australia and India, to free up capital for investments in wealth management [6]. - Citigroup is preparing for an IPO of its consumer, small business, and middle-market banking operations in Mexico, indicating a strategic shift towards more profitable segments [6]. Revenue Growth Projections - The company projects a compounded annual growth rate (CAGR) of 4-5% in revenues by the end of 2026, reflecting optimism about its long-term growth potential [7]. Capital Requirements and Regulatory Changes - Proposed changes to Basel regulations could halve the additional capital requirements for large banks, which would allow Citigroup to allocate more resources to lending and other initiatives, potentially increasing profitability [7][8]. Interest Rate Environment - The Federal Reserve is expected to begin cutting interest rates, which could alleviate funding cost pressures for Citigroup and support net interest margin (NIM) expansion [8][9]. - Citigroup's NII dropped by 1% in the first half of 2024, with management projecting a modest decline in NII for 2024 compared to 2023 levels [8]. Earnings Estimates and Market Valuation - Analysts have lowered earnings estimates for 2024 due to anticipated credit losses, but long-term estimates for 2025 remain unchanged, indicating confidence in the company's future [12]. - Citigroup's current price-to-earnings (P/E) ratio of 8.65 is below the industry average of 11.08, suggesting that the stock may be undervalued [14]. Technical Indicators - The stock is currently trading below its 50-day moving average, indicating a lack of strong momentum in the near term [16].

Citigroup Inc. (C) has agreed to divest its global fiduciary and trust administration services business, Citi Trust, to JTC, one of the global professional services providers, for $80 million. This strategic move aligns with the bank’s focus on concentrating resources in areas that drive growth in its wealth business.Citi Trust, known for its comprehensive trust solutions across seven key jurisdictions like New York, Delaware, South Dakota, Jersey, Singapore, Switzerland and the Bahamas, serves over 2,000 u ...

Citigroup (C) closed the latest trading day at $58.39, indicating a +1.25% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.13%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.52%.Shares of the U.S. bank witnessed a loss of 6.07% over the previous month, trailing the performance of the Finance sector with its gain of 4.44% and the S&P 500's gain of 3.67%.Market participants will be closely following the financial results of Citig ...

violinconcertono3Citigroup (NYSE:C) (NEOE:CITI:CA) is currently trading at ~0.65x tangible value ("TBV") which is certainly a distressed valuation, although it did recover some in the last year or so. Still, the stock is significantly underpriced in my view and I think it is important to understand why the market is pricing the stock at such a large discount to tangible boo There are several key aspects that Mr. Market is concerned with and skeptical about, this includes the following: Citi chequered r ...

VV Shots Given Citigroup's (NYSE:C) significant growth opportunities and its extremely low valuation, I view C stock as a buy. While the bank, like all of its U.S. peers, face challenges going forward, I believe that the shares' low valuation more than reflects the likely impact of the risks that it faces. As is the case with all large U.S. banks, Citi will probably benefit from significant improvements in its wealth management, investment banking, and trading businesses amid the U.S. economy's likely soft ...

Richard Drury Citigroup (NYSE:C), along with the banking sector, has recently started rolling over despite good news on lower capital regulations. The large bank stock only trades further below tangible book value when the stock falls, providing an even better bargain. My investment thesis remains ultra Bullish on the banking stock, with capital returns set to ramp up. Source: Finviz Basel III Reductions The big news of the week was Federal Reserve Vice Chair for Supervision Michael Barr announcing a plan f ...

A top Citigroup banker reportedly said that a handful of tech companies are considering going public on U.S. exchanges before the end of the year and that they could benefit from demand for high-growth stocks.Paul Abrahimzadeh, co-head of equity capital markets for North America at Citigroup, said last week that investors see high-growth stocks like those of the tech companies as being more resistant to economic slowdowns and more likely to benefit from lower interest rates, Bloomberg reported Tuesday (Sept ...

At the 2024 Barclays Global Financial Services Conference, Citigroup's (C) CFO, Mark Mason, stated that the company’s investment banking (IB) fees are anticipated to jump 20% in the third quarter of 2024 from the year-ago period. The projections of upbeat activity across debt capital markets and mergers and acquisitions are reasons behind this optimistic view.Meanwhile, Citigroup expects markets revenues to decline nearly 4% compared with last year’s relatively strong third quarter.At the same conference, o ...