Bank of America Corporation (NYSE:BAC) Plans Dividend Increase - $0.32 Per Share

Key Points

• Bank of America announced a quarterly dividend of $0.32 per share, up 14.3% from the prior $0.28 payment. The dividend is payable on September 25 to shareholders of record on September 4, with an annualized yield of 2.1%.
• The company has a strong dividend track record, having raised its payout every year for the past 11 years. Its payout ratio of 26.4% suggests the dividend is well covered by earnings.
• Bank of America also reported solid recent results, beating EPS estimates with $1.21 per share in its latest quarter and posting 19.6% year-over-year revenue growth. The stock was trading up 1.2% to $62.00, near its 52-week high.

Bank of America Corporation (NYSE:BAC) announced a quarterly dividend on Friday, July 24th. Investors of record on Friday, September 4th will be paid a dividend of 0.32 per share by the financial services provider on Friday, September 25th. This represents a c) dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Friday, September 4th. This is a 14.3% increase from Bank of America's previous quarterly dividend of $0.28.

Bank of America has increased its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 11 years. Bank of America has a payout ratio of 26.4% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Bank of America to earn $5.24 per share next year, which means the company should continue to be able to cover its $1.12 annual dividend with an expected future payout ratio of 21.4%.

Bank of America Trading Up 1.2%

NYSE:BAC traded up $0.72 on Friday, hitting $62.00. 29,014,480 shares of the stock were exchanged, compared to its average volume of 38,728,797. The stock has a market capitalization of $439.96 billion, a price-to-earnings ratio of 14.22, a P/E/G ratio of 0.99 and a beta of 1.17. Bank of America has a 52 week low of $44.75 and a 52 week high of $62.28. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.82 and a current ratio of 0.83. The company's 50-day moving average price is $56.17 and its 200 day moving average price is $53.29.

Bank of America (NYSE:BAC - Get Free Report) last issued its earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.13 by $0.08. The company had revenue of $8.08 billion for the quarter, compared to analyst estimates of $30.78 billion. Bank of America had a net margin of 17.56% and a return on equity of 12.20%. The company's revenue for the quarter was up 19.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.89 EPS. On average, equities research analysts forecast that Bank of America will post 4.65 earnings per share for the current year.

Bank of America Company Profile

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.

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