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 23.12   16.8 1.38 0.30 1.31


Older articles featuring Bank Of America (BAC):
Bank Of America And A 5.8% Yield
5%+ Dividend Yield Portfolio: New Rules For FOMO (February 2017 Review)
The 2 And 10-Year Yield Spread: And The Different Messages
Stocks Going Ex-Dividend The First Week Of March
Bank Of America: A Dividend Growth Machine That's Firing On All Cylinders And Remains Crazy Cheap
As Bank Of America Rises, Here's Why Yields Are Signaling Correction
5%+ Dividend Yield Portfolio: Taking Profits As Market Valuations Flash Warnings (Jan 2017 Review)
5%+ Dividend Yield Portfolio: Nearly Doubling The S&P 500 Return In 2016 (October 2016 Review)
My Dividend Growth Portfolio - Q3 2016 Summary
Dividend Update - September 2016