Citigroup’s Dividend Power and Global Reach: A Bank Stock to Buy Now?

Let’s cut to the chase: Citigroup (C) is firing on all cylinders right now. With a dividend yield of 3.54%, a 37.5% upside potential per analysts, and a fortress-like balance sheet, this is a stock that’s turning heads. But is it a buy? Let’s break it down.

First, the dividend. Citigroup isn’t just throwing cash around—it’s been paying dividends for 34 straight years, and in Q1 alone, it returned $2.8 billion to shareholders through dividends and buybacks. That’s real money, folks. And with a yield that’s nearly double the S&P 500’s average, this is a rare bird in a world of shrinking payouts.

Now, let’s talk performance. Citigroup’s Q1 2025 results were a masterclass in resilience. Net income hit $4.1 billion, and revenue rose 3% to $21.6 billion, driven by ** Markets revenue up 12% and Investment Banking revenue soaring 12%** (M&A deals nearly doubled!). Even in a sluggish global economy, Citigroup’s cross-border expertise is paying off.

But here’s the kicker: cost discipline. Expenses fell 5% to $13.4 billion, and the company has delivered three straight quarters of positive operating leverage across all five business lines. CEO Jane Fraser isn’t just talking about global growth—she’s proving it.

Analysts are betting big here. The consensus price target is $86.82, a 37.5% jump from its current price of ~$58.85. That’s a $28 gap the market hasn’t yet filled. Why? Because Citigroup’s long-term story is undeniable. By 2028, revenue estimates hit $91.1 billion, and earnings could top $20.2 billion—numbers that scream “buy now before the crowd catches on.”

But wait—there are landmines. Non-interest revenue dipped 6%, and the $2.7 billion cost of credit shows macroeconomic jitters. Plus, regulatory pressures and operational costs could crimp near-term profits. Don’t be fooled: this isn’t a “set it and forget it” stock.

So, where’s the edge? Three words: global services dominance. Citigroup’s TTS (Treasury and Trade Solutions) and Security Services divisions delivered the highest first-quarter revenue in a decade. In a world where cross-border trade and geopolitical tensions (hello, Ukraine-Russia) are the new normal, Citigroup isn’t just a bank—it’s a geopolitical play.

The skeptics will say, “What about the risks?” Fair question. But here’s the math: Citigroup’s CET1 capital ratio is 13.4%, and its tangible book value per share is $90—both signs of a fortress balance sheet. Even if near-term growth stumbles, this stock has a safety net.

In the end, Citigroup checks all the boxes for a long-term hold: consistent dividends, diversified revenue streams, and analyst-backed upside. Yes, there are bumps in the road, but this is a stock primed to outperform over the next three years.

BOTTOM LINE: Citigroup (C) is a BUY. With a 37.5% upside potential, a dividend yield 3.5x the 10-year Treasury, and a global footprint that’s hard to replicate, this is one of the best plays in financials right now. But don’t dawdle—the market won’t miss this gap for long.

Investor takeaway: If you’re looking for a dividend powerhouse with global growth legs, Citigroup is the stock to own. But keep an eye on macro risks and regulatory headwinds—this isn’t a no-brainer, but the reward here is real.