Citigroup, Inc. (C)

Hoglum (58.65) Submitted: 12/06/06 12:46 PM : Start Price: $45.55 C Score: -42.01

Citigroup Inc. is most definitely a "King of the Hill" play. They are one of the top holdings in the S&P 500 and for good reason. They generate tremendous profits and pay out substantial amounts to shareholders. Their dividend is payout close to 50%, and as their income rises, so does the dividend. Citigroup has sold off most of its insurance divisions to focus more on their core banking business. With the purchase of TD Waterhouse's Capital Markets Business, they are a top dog in corporate and investment banking. Their consumer group is a powerhouse both in the United States and internationally. Thus, almost every dollar that trades hands at some point crosses Citigroup's path, and they're not going to let it get by without taking a cut. Relative to earnings, banks seem to trade fairly low in contrast to market capitalization; however, when it comes to investing I like to go where the money is. That means banks, and Citigroup is one of the best.

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