JPMorgan Chase is also in a commanding position on Main Street, through its robust commercial banking operations, and on Wall Street, by way of its investment bank. This gives it a diversity of revenue streams that can help offset fluctuations in the business cycle , making it a more stable holding for risk-averse investors.
Finally, JPMorgan Chase pays a generous and growing dividend. Its stock currently yields 2.8%. That ranks it sixth on the KBW Bank Index, which tracks shares of two dozen blue-chip bank stocks. And it means that owners of JPMorgan Chase's shares earn considerably more in dividend payments than owners of the typical stock on the S&P 500, which yields 2.1%.
While JPMorgan Chase certainly isn't a screaming bargain, I believe it's reasonably priced and offers considerable room for growth once interest rates begin to rise in earnest.
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John Maxfield owns shares of Bank of America. The Motley Fool recommends Bank of America. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.