In our latest publication, we presented an insightful list of the ten best long-term stocks to acquire, as recommended by some of the world's wealthiest investors. This article aims to delve deeper into the current standing of the Bank of America Corporation (NYSE: BAC) in comparison to other top-tier long-term stocks.

Historically, dividend-paying stocks have been regarded as a reliable cornerstone for investment portfolios. They not only provide a steady stream of income, thereby cushioning the effects of market fluctuations, but also contribute to overall portfolio stability. Nevertheless, these stocks sometimes lag behind the broader market trends, often being eclipsed by more glamorous, high-growth opportunities. For instance, in recent years, dividend stocks have underperformed as investors gravitated towards the rapidly evolving technology sector. However, the recent market correction, coupled with renewed scrutiny on tech stocks due to tariffs instituted during the Trump administration, has rekindled interest in dividend stocks among investors.

The Dividend Aristocrats Index, which tracks companies that have consistently increased their dividend payouts for 25 consecutive years, has seen a slight decline of nearly 2% since the beginning of 2025. In contrast, the overall market has experienced a steeper decline of approximately 8%. This shift indicates a potential resurgence in dividend-paying stocks, with an increasing number of companies either initiating dividend policies or enhancing their existing payouts to capture investor interest. According to a recent analysis by S&P Global, a robust 408 companies within the broader market are projected to distribute dividends in 2025. Out of these, nearly 350 firms are anticipated to elevate their dividend payouts over the upcoming four quarters, which is likely to contribute to an estimated 6% year-over-year growth in total dividends. Furthermore, the broader U.S. market is expected to see an aggregate dividend growth of 4.6% in 2025. Given that companies in the S&P 500 account for approximately 85% of all dividends paid in the U.S., this index serves as a reliable barometer for overall dividend trends.

The enduring appeal of dividend-paying stocks remains particularly strong for investors aiming to mitigate risk while still pursuing growth opportunities. Ramona Persaud, the esteemed portfolio manager of both the Fidelity Equity-Income Fund and the Fidelity Global Equity Income Fund, expresses a preference for high-quality firms that not only provide robust dividends but are also fairly priced. She elucidates that declining interest rates can foster an advantageous environment for dividend stocks, as their yields become increasingly appealing in comparison to traditional bonds. Additionally, Persaud points out that lower interest rates could potentially facilitate broader market gains, diverging from the recent trend where market performance was predominantly driven by a select few mega-cap growth companies.

Her investment philosophy is grounded in identifying companies with strong balance sheets, dependable cash flows, and significant return potential. She further underscores the critical importance of valuationactively seeking stocks that are reasonably priced relative to their industry counterparts and historical benchmarkswhile also searching for dividend yields that offer distinct advantages in the current market climate. This strategic blend of quality, value, and income has, according to her observations, enabled the fund to perform admirably in both bullish and bearish market conditions. Persaud commented on the allure of dividend stocks, stating: