Daily dividend news for investors in dividend stocks

Why Bank Of America's Projected Dividend Increase Is Only The Beginning

Published Tue, 25 Feb 2014 07:22:47 -0500 on Seeking Alpha

Bank of America (BAC) and Citigroup (C) are the last two big banks to remain with their diminutive, crisis-induced dividends of one penny per share per quarter. However, with fundamentals improving at BAC seemingly by the day, many are calling for a dividend increase when the Fed's CCAR program results are announced in the coming weeks. One such forecast is from Markit, seeing BAC raising its payout from a penny per quarter to a nickel. While that doesn't sound like much, in this article, we'll take a look at what such a payout would mean for shareholders and what it could mean going forward. At five cents per share quarterly, BAC's projected dividend would provide a yield of about 1.2% and while this is nothing to write home about, such an increase would signal an important event for BAC shareholders. First, a dividend increase of that magnitude would signal... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
BANK OF AMERICA 32.10   20.7 1.55 0.48 1.48


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