Bank of America Corporation (NYSE:BAC) Announces $0.28 Quarterly Dividend

Key Points

• Bank of America announced a quarterly dividend of $0.28 per share, payable on December 26th, with an ex-dividend date of December 5th.
• The company reported earnings of $1.06 per share for the latest quarter, exceeding estimates and reflecting a 10.8% year-over-year revenue increase.
• Bank of America holds a payout ratio of 24.5%, ensuring coverage for its annual dividend of $1.04 with expected earnings of $4.36 per share next year.

Bank of America Corporation (NYSE:BAC) announced a quarterly dividend on Thursday, October 23rd. Investors of record on Friday, December 5th will be given a dividend of 0.28 per share by the financial services provider on Friday, December 26th. This represents a c) dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend is Friday, December 5th.

Bank of America has a dividend payout ratio of 24.5% meaning its dividend is sufficiently covered by earnings. Analysts expect Bank of America to earn $4.36 per share next year, which means the company should continue to be able to cover its $1.04 annual dividend with an expected future payout ratio of 23.9%.

Bank of America Stock Performance

Bank of America stock opened at $51.77 on Friday. The firm's 50 day simple moving average is $50.47 and its 200 day simple moving average is $46.19. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.12. The firm has a market capitalization of $383.49 billion, a PE ratio of 14.11, a price-to-earnings-growth ratio of 1.94 and a beta of 1.33. Bank of America has a 1-year low of $33.06 and a 1-year high of $52.88.

Bank of America (NYSE:BAC - Get Free Report) last posted its earnings results on Wednesday, October 15th. The financial services provider reported $1.06 earnings per share for the quarter, topping analysts' consensus estimates of $0.93 by $0.13. The business had revenue of $28.09 billion for the quarter, compared to analyst estimates of $27.05 billion. Bank of America had a net margin of 15.70% and a return on equity of 10.76%. Bank of America's revenue was up 10.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.81 EPS. As a group, analysts expect that Bank of America will post 3.7 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

BAC has been the subject of several research reports. Robert W. Baird reiterated a "neutral" rating and issued a $52.00 target price on shares of Bank of America in a research report on Friday, June 27th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Bank of America in a research report on Wednesday, October 8th. Daiwa Capital Markets upped their target price on shares of Bank of America from $54.00 to $58.00 and gave the stock an "outperform" rating in a research report on Wednesday, October 8th. Erste Group Bank upgraded shares of Bank of America from a "hold" rating to a "buy" rating in a research report on Friday, October 3rd. Finally, Ameriprise Financial upgraded shares of Bank of America to a "buy" rating in a research report on Wednesday. Twenty-three equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $57.23.

Bank of America Company Profile

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.

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