Jessica Inskip Explains Why She Likes This Dividend Growth Stock With Over 2% Yield

Core Viewpoint - Analysts are optimistic about Citigroup Inc (NYSE:C) as a turnaround investment, highlighting its strong dividend yield and potential for growth in the context of deregulation in the banking sector [1][2]. Group 1: Investment Thesis - Citigroup has shown significant stock performance, up 42% compared to the S&P 500's 12.5% [1]. - The company offers a dividend yield of 2.41%, with a payout ratio of approximately 33%, indicating room for future growth [1]. - Recent improvements in profitability and operating leverage suggest that Citigroup's margins and returns may align more closely with its peers moving forward [2]. Group 2: Market Position and Strategy - Citigroup is one of the largest banks in the U.S. by total assets, and its investments in IT, compliance, and risk management have previously pressured margins [2]. - With these investments nearing completion, expectations are for a decline in expenses, leading to improved margins and returns [2]. - Despite the positive outlook for Citigroup, some analysts believe that certain AI stocks may offer higher potential returns with lower risk [2].