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Bank of America sets quarterly dividends for common and preferred stock

Published 10/16/2024, 04:21 PM
© Reuters.
BAC
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CHARLOTTE, N.C. - Bank of America Corporation (NYSE:BAC) has announced that its Board of Directors has declared quarterly cash dividends for its common and preferred stockholders. The dividend for common stock is set at $0.26 per share and will be payable on December 27, 2024, to shareholders of record as of December 6, 2024. Additionally, a regular quarterly cash dividend of $1.75 per share has been declared for the 7% Cumulative Redeemable Preferred Stock, Series B, which will be payable on January 24, 2025, to shareholders of record as of January 10, 2025.

As one of the leading financial institutions globally, Bank of America provides a comprehensive suite of services including banking, investing, asset management, and risk management products to individual consumers, small and middle-market businesses, and large corporations. The company boasts a significant presence in the United States with a network of approximately 3,700 retail financial centers, around 15,000 ATMs, and a strong digital banking platform with nearly 58 million verified users.

In addition to its consumer banking operations, Bank of America is recognized as a global leader in wealth management, corporate and investment banking, and trading across various asset classes. It serves corporations, governments, institutions, and individuals worldwide and supports approximately 4 million small business households with its online products and services.

Bank of America Corporation's stock is traded on the New York Stock Exchange under the ticker symbol NYSE:BAC. The corporation's commitment to shareholder returns is reflected in the consistency of its dividend payments.

For further information on Bank of America's financial news, including dividend announcements and other relevant updates, stakeholders are directed to the Bank of America newsroom. This announcement is based on a press release statement issued by Bank of America Corporation.

In other recent news, Bank of America has been performing exceptionally in recent times, as noted by several financial analysis firms. Oppenheimer has raised its price target for the company to $50.00, following a strong third-quarter performance, including a reported net interest income of $14.1 billion, a 1.8% quarter-over-quarter increase. The bank's earnings per share (EPS) for the third quarter were reported at $0.81, surpassing both the analyst's estimate of $0.77 and the consensus estimate of $0.76.

On the other hand, JPMorgan maintained its Overweight rating for Bank of America, noting a strong performance across all markets-related revenues in the third quarter. Evercore ISI also raised its price target for Bank of America to $45, citing potential for net interest income growth and the strength of the bank's Markets business.

In the most recent developments, Bank of America reported robust third-quarter results, with revenue totaling $25.5 billion and net income amounting to $6.9 billion after tax. The bank's net interest income (NII) observed a growth of 2%, and the financial institution also noted a significant addition of 360,000 net new consumer checking accounts during this quarter.

Looking ahead, Bank of America anticipates its fourth-quarter NII to exceed $14.3 billion and foresees improved operating leverage moving into 2025. These recent developments provide a clear picture of the bank's financial health and future prospects.

InvestingPro Insights

Bank of America's recent dividend declaration aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 2.47% and has raised its dividend for 10 consecutive years. This consistency is further underscored by an InvestingPro Tip noting that Bank of America has maintained dividend payments for an impressive 54 consecutive years.

The bank's financial health appears robust, with a market capitalization of $329.16 billion and a P/E ratio of 15.48. These metrics suggest that investors are willing to pay a premium for BAC's earnings, reflecting confidence in the company's future performance. Additionally, an InvestingPro Tip indicates that Bank of America is trading near its 52-week high, which could be interpreted as a sign of strong market sentiment.

Despite facing challenges such as weak gross profit margins, as highlighted by another InvestingPro Tip, Bank of America remains profitable. The company reported revenue of $94.63 billion in the last twelve months, with an operating income margin of 30.62%. This profitability is expected to continue, with analysts predicting that the company will remain in the black this year.

For investors seeking more comprehensive insights, InvestingPro offers additional tips and analysis. Currently, there are 9 more InvestingPro Tips available for Bank of America, providing a deeper understanding of the company's financial position and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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