Bank of America Corporation (NYSE:BAC) Plans Dividend Increase – $0.32 Per Share

Bank of America Corporation (NYSE:BAC) announced a quarterly dividend on Friday, July 24th. Shareholders of record on Friday, September 4th will be paid a dividend of 0.32 per share by the financial services provider on Friday, September 25th. This represents a c) dividend on an annualized basis and a yield of 2.1%. The ex-dividend date is Friday, September 4th. This is a 14.3% increase from Bank of America’s previous quarterly dividend of $0.28.

Bank of America has raised its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 11 years. Bank of America has a dividend payout ratio of 26.4% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Bank of America to earn $5.24 per share next year, which means the company should continue to be able to cover its $1.12 annual dividend with an expected future payout ratio of 21.4%.

Bank of America Stock Performance

BAC stock opened at $62.00 on Friday. The stock has a 50-day moving average price of $56.42 and a 200-day moving average price of $53.36. Bank of America has a 1-year low of $44.75 and a 1-year high of $62.28. The company has a current ratio of 0.83, a quick ratio of 0.82 and a debt-to-equity ratio of 1.23. The firm has a market cap of $439.96 billion, a PE ratio of 14.22, a price-to-earnings-growth ratio of 0.98 and a beta of 1.17.

Bank of America (NYSE:BAC) last announced its quarterly earnings data on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.13 by $0.08. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.The company had revenue of $8.08 billion for the quarter, compared to the consensus estimate of $30.78 billion. During the same period in the previous year, the business earned $0.89 EPS. The firm’s revenue was up 19.6% compared to the same quarter last year. As a group, equities research analysts expect that Bank of America will post 4.65 earnings per share for the current year.

Analysts Set New Price Targets

Several brokerages have issued reports on BAC. Barclays boosted their price target on Bank of America from $71.00 to $72.00 and gave the company an “overweight” rating in a research note on Wednesday, July 15th. Autonomous Res lowered their price objective on shares of Bank of America from $62.00 to $54.00 and set a “neutral” rating for the company in a research note on Monday, April 6th. Truist Financial boosted their target price on shares of Bank of America from $64.00 to $65.00 and gave the company a “buy” rating in a research report on Wednesday, July 15th. Evercore set a $63.00 price target on shares of Bank of America and gave the stock an “outperform” rating in a report on Monday, July 6th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Bank of America in a research note on Tuesday. Twenty-one analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, Bank of America currently has a consensus rating of “Moderate Buy” and an average target price of $63.77.

Bank of America Company Profile

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.