Citigroup (C) has been a laggard for years, lumbering behind rivals like JPMorgan (JPM) and Bank of America (BAC) in its share price, profitability, and other measures of success, Carleton English writes in this week’s edition of Barron’s. A quick fix isn’t coming, but with Citi’s stock near 15-year lows – trading at half its tangible book value – it’s not a bad place to park some cash, earn a 5% yield, and bet on better days, the author says. Citi is so far behind rivals that it may still take years to catch up. But its 5% dividend yield looks well covered by cash flows. That’s about what you’d get in a money-market fund or short-term Treasury bill. Those are lower-risk options, of course, but they won’t be nearly as profitable if patience in Citi ultimately pays off, the publication adds.
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