Dividend Bank of America +25%

bac

Bank of America announced a 25% dividend increase. The quarterly dividend is increased from $0,12 to $0,15. This means the yearly dividend per share is up from $0,48 to $0,60.

I own 43 shares of Bank of America. So this dividend increase will increase my yearly expected dividend income with $5,16. Yield on cost will increase from 1,84% to 2,30%.

Last year Bank of America already increased their dividend with 60% so the yield on cost is improving a lot for Bank of America.

3 thoughts on “Dividend Bank of America +25%”

    1. Banks are cyclical and the dividend payouts were stopped or reduced to the bare minimun during the bank crisis.

      The graph with the dividend development since 1993 shows what can happen to dividend payments of banks.

      dividend development bank of america

      Despite the dividend growth last few years, the dividend is still not even close to dividend paid in the past.

      I started my position in Bank of America when did score well on stress tests done by the Federal Reserve. Based on those results I believe the fundamentals of BAC are strong enough to start growing dividend again.

      Maybe they will develop the same as before 2008…

  1. YES!! I missed this dividend increase, but I’m pumped for it. BAC was one of my first investing positions and I missed it. Even though I only own 11 shares, I’m excited about this.

    Bert

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