In about two weeks, the Federal Reserve will release capital plan results for big U.S. banks, and perhaps none will be watched more closely than Bank of America's.
The Charlotte bank's dividend has been stuck at a penny per share each quarter since the financial crisis, but analysts are predicting that this will be the year that changes. CEO Brian Moynihan has been repeatedly asked about what the bank will ask regulators to approve, but he has consistently stayed silent. Moynihan memorably promised a dividend increase in 2011 that was rejected.
Analysts are now predicting the dividend rate could double or even quadruple, the Motley Fool reports. Independent bank analyst Nancy Bush told the Observer that she believes Bank of America will be approved to offer a 4 cent quarterly dividend, or 16 cents per share. That would be a roughly 1 percent dividend yield based on where shares have been trading lately.
"It's not anything that's going to make anybody go, 'wow,'" she says.
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Tuesday, March 11, 2014
Will Bank of America's dividend quadruple?
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3 comments:
Ken Lewis.
The gift that keeps on giving.
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