Key Moments
- Bank of America increased its quarterly common stock dividend by 4 cents, bringing it to 32 cents per share, a 14% rise.
- The dividend move followed the Federal Reserve’s stress test results, after which some banks announced higher dividends and new share repurchase plans.
- Bank of America recently beat Wall Street expectations for second-quarter profit, supported by record trading activity and robust investment banking driven by corporate dealmaking.
Dividend Increase Highlights Capital Return Strategy
NEW YORK, July 24 (Reuters) – Bank of America said on Friday it raised its quarterly common stock dividend by 4 cents, or 14%, to 32 cents per share. Chief Executive Brian Moynihan linked the higher payout to the bank’s focus on returning excess capital to its shareholders.
Context of Broader Capital Actions Across Banks
According to the bank, the dividend increase comes in the wake of the Federal Reserve’s stress test results released last month. Following those results, some banks announced higher dividends along with new share buyback initiatives.
Recent Earnings Performance
Earlier this month, Bank of America reported second-quarter earnings that surpassed Wall Street forecasts. The bank said that global market volatility supported record trading performance, while a rise in corporate dealmaking contributed to stronger investment banking results.
Dividend Details
| Metric | Previous Level | New Level | Change |
|---|---|---|---|
| Quarterly common stock dividend per share | 28 cents | 32 cents | 4 cents increase (14%) |
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