Bank of America Co. (NYSE:BAC) Plans Dividend Increase – $0.21 Per Share

Bank of America Co. (NYSE:BAC) announced a quarterly dividend on Wednesday, July 21st, RTT News reports. Shareholders of record on Friday, September 3rd will be paid a dividend of 0.21 per share by the financial services provider on Friday, September 24th. This represents a $0.84 dividend on an annualized basis and a yield of 2.18%. This is an increase from Bank of America’s previous quarterly dividend of $0.18.

Bank of America has increased its dividend by 84.6% over the last three years and has increased its dividend annually for the last 1 consecutive years.

BAC stock traded up $0.77 during midday trading on Wednesday, reaching $38.46. 49,716,641 shares of the company’s stock traded hands, compared to its average volume of 50,786,227. Bank of America has a 52-week low of $22.95 and a 52-week high of $43.49. The company has a market cap of $329.58 billion, a PE ratio of 12.93, a P/E/G ratio of 1.62 and a beta of 1.54. The company has a current ratio of 0.74, a quick ratio of 0.74 and a debt-to-equity ratio of 1.08. The stock’s 50-day moving average is $41.14.

Bank of America (NYSE:BAC) last announced its earnings results on Wednesday, July 14th. The financial services provider reported $1.03 EPS for the quarter, beating the Zacks’ consensus estimate of $0.77 by $0.26. Bank of America had a net margin of 30.82% and a return on equity of 11.08%. The business had revenue of $21.50 billion during the quarter, compared to analysts’ expectations of $21.77 billion. During the same period in the prior year, the company earned $0.37 earnings per share. The firm’s revenue was down 3.6% on a year-over-year basis. Sell-side analysts anticipate that Bank of America will post 3.26 earnings per share for the current fiscal year.

A hedge fund recently raised its stake in Bank of America stock. Camden National Bank boosted its stake in shares of Bank of America Co. (NYSE:BAC) by 9.8% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 11,568 shares of the financial services provider’s stock after buying an additional 1,030 shares during the period. Camden National Bank’s holdings in Bank of America were worth $351,000 as of its most recent filing with the Securities & Exchange Commission. 70.17% of the stock is owned by institutional investors.

Bank of America announced that its Board of Directors has approved a share buyback plan on Thursday, April 15th that allows the company to buyback $25.00 billion in shares. This buyback authorization allows the financial services provider to purchase up to 7.6% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s management believes its shares are undervalued.

A number of analysts have commented on the stock. Keefe, Bruyette & Woods initiated coverage on shares of Bank of America in a report on Wednesday, July 7th. They set a “market perform” rating and a $43.87 target price for the company. JPMorgan Chase & Co. upped their target price on shares of Bank of America from $40.50 to $43.50 and gave the stock an “overweight” rating in a research report on Monday, May 3rd. Truist Securities initiated coverage on shares of Bank of America in a research report on Wednesday, June 2nd. They set a “buy” rating for the company. Credit Suisse Group upped their target price on shares of Bank of America from $46.00 to $47.00 and gave the stock an “outperform” rating in a research report on Friday, July 16th. Finally, Jefferies Financial Group increased their price objective on shares of Bank of America from $33.00 to $41.00 and gave the company a “hold” rating in a research report on Friday, April 9th. One analyst has rated the stock with a sell rating, six have given a hold rating and fifteen have issued a buy rating to the stock. Bank of America currently has a consensus rating of “Buy” and an average price target of $39.83.

About Bank of America

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. Its Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, noninterest-and interest-bearing checking accounts, and investment accounts and products; and credit and debit cards, residential mortgages, and home equity loans, as well as direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans.

Recommended Story: What’s a Black Swan?

Dividend History for Bank of America (NYSE:BAC)

Receive News & Ratings for Bank of America Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bank of America and related companies with MarketBeat.com's FREE daily email newsletter.