Bank of America Declares First-Quarter 2024 Stock Dividend

Rhea-AI Summary

Bank of America Corporation has declared a regular quarterly cash dividend on its common stock of $0.24 per share and $1.75 per share on the 7% Cumulative Redeemable Preferred Stock, Series B. The dividend is payable on March 29, 2024, and April 25, 2024, respectively. Bank of America is a leading financial institution with a wide range of financial products and services, serving millions of clients globally. The company's stock is listed on the New York Stock Exchange (NYSE: BAC).

Insights

Financial Analyst

The declaration of a regular quarterly cash dividend by Bank of America Corporation represents a commitment to return value to shareholders and can be indicative of the company's financial health and stability. A consistent dividend payout can signal confidence in current and future earnings, which may positively influence investor sentiment and potentially the stock's performance. The specific dividend amount of $0.24 per common share and $1.75 per share on the preferred stock suggests a calculated approach to capital distribution, balancing reinvestment in the company with shareholder rewards.

It's also essential to consider the dividend yield, calculated by dividing the annual dividends per share by the stock price. This yield provides a measure of the return on investment for dividend investors. In comparison to industry standards, if Bank of America's dividend yield is competitive, it may attract income-focused investors, especially in a low-interest-rate environment.

Market Research Analyst

Bank of America's announcement extends beyond the immediate financial implications for shareholders. It can also reflect broader economic conditions, as banks are often seen as bellwethers for the economy. The ability of a major financial institution to pay dividends might suggest a stable banking sector and, by extension, a resilient economy. However, it is crucial to analyze this within the context of the overall market and economic indicators, including interest rate trends, which significantly impact bank profitability.

Furthermore, the bank's expansive reach, serving millions of consumers and small businesses and its global presence, indicate its role as a key player in financial markets. The announcement can influence market perceptions of the banking sector's health and, consequently, affect financial markets more broadly. Investors may also consider the bank's digital user base and technological advancements as part of its long-term growth strategy, which could be a factor in assessing the sustainability of its dividend payments.

Economist

Dividend declarations can also be evaluated from a macroeconomic perspective. In a stable or growing economy, corporations like Bank of America are more likely to increase or maintain dividend payouts. Conversely, during economic downturns, dividends might be reduced or suspended as companies conserve cash. Therefore, the regular declaration of dividends might also be interpreted as an optimistic economic signal. However, it is essential to consider external economic factors, such as inflation rates and fiscal policies, which can impact the real value of dividend payments to investors.

Additionally, the distribution of dividends can influence the velocity of money within the economy. Shareholders receiving dividends may reinvest the funds into the market, potentially stimulating economic activity. The impact on the stock market, therefore, can be multifaceted, affecting not only the company's stock but also the broader market through increased investment flows.

CHARLOTTE, N.C., Jan. 31, 2024 /PRNewswire/ -- Bank of America Corporation today announced the Board of Directors declared a regular quarterly cash dividend on Bank of America common stock of $0.24 per share, payable on March 29, 2024 to shareholders of record as of March 1, 2024.

The Board also declared a regular quarterly cash dividend of $1.75 per share on the 7% Cumulative Redeemable Preferred Stock, Series B. The dividend is payable on April 25, 2024 to shareholders of record as of April 11, 2024.

Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 57 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

www.bankofamerica.com

Investors May Contact: 

Lee McEntire, Bank of America
Phone:  1.980.388.6780
lee.mcentire@bofa.com

Jonathan Blum, Bank of America (Fixed Income)
Phone:  1.212.449.3112
jonathan.blum@bofa.com

Reporters May Contact:

Bill Halldin, Bank of America
Phone: 1.916.724.0093
william.halldin@bofa.com

Christopher P. Feeney, Bank of America 
Phone: 1.980.386.6794
christopher.feeney@bofa.com

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SOURCE Bank of America Corporation

FAQ

What is the dividend declared by Bank of America on its common stock?

Bank of America has declared a regular quarterly cash dividend of $0.24 per share on its common stock.

What is the dividend declared by Bank of America on its 7% Cumulative Redeemable Preferred Stock, Series B?

Bank of America has declared a regular quarterly cash dividend of $1.75 per share on its 7% Cumulative Redeemable Preferred Stock, Series B.

When are the dividends payable to shareholders of Bank of America?

The dividend on common stock is payable on March 29, 2024, and the dividend on the 7% Cumulative Redeemable Preferred Stock, Series B is payable on April 25, 2024.

Where is Bank of America's stock listed?

Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE) under the ticker symbol BAC.