This Dividend Stock Has More Than Doubled in 2 Years. Is There More Gas Left in the Tank?

Group 1 - Citigroup's stock has increased by 38% this year and has more than doubled over the last two years, outperforming the broader market and the financial sector [1] - The stock currently trades at less than 20% of its 2007 highs, reflecting the company's historical challenges [2] - Under CEO Jane Fraser, Citigroup is undergoing a transformation that has positively impacted its earnings and return metrics [2] Group 2 - Citigroup returned nearly $3.1 billion to shareholders in Q2, with an 82% payout ratio, including $2 billion for share repurchases [5] - The company increased its Q3 quarterly dividend by 7.1% to $0.60 following the Federal Reserve's annual stress testing [6] - Goldman Sachs projects a 19% CAGR for Citigroup's dividend growth from 2024 to 2026, supported by strong earnings growth [7] Group 3 - The investment case for Citigroup is based on its turnaround and the resulting impact on valuations, highlighting a disconnect between Citigroup and other large-cap U.S. banks [8]