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Bank of america common stock dividend

bank of america common stock dividend

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Market movers: Stocks that saw action on Thursday - and why

A roundup of some of the North American equities making moves in both directions today

On the rise

Toronto-Dominion Bank (TD-T) gained on Thursday after it reported higher fourth-quarter profit excluding one-time items and raised its dividend by 13 per cent, driven by solid returns from retail banking and a large recovery from its reserves against loan losses.

TD raised its quarterly dividend to 89 cents per share after the federal banking regulator recently lifted pandemic-related restrictions. And the bank announced a buyback plan that allows it to repurchase 50 million shares, or about per cent of the common stock outstanding.

TD’s core retail banking profits from operations in Canada and the U.S. rebounded from low levels a year ago, and edged higher when compared with the third quarter. Customers are starting to spend and borrow more and lending volumes have started to rise accordingly, while credit card balances increased for the second straight quarter as travel restrictions eased.

“Any economic recovery is never in a straight line. But what we saw in [the fourth quarter] is strong customer activity,” said Kelvin Tran, TD’s chief financial officer, in an interview.

For the fiscal fourth quarter that ended Oct. 31, TD earned $billion, or $ per share, compared with $billion, or $ per share, a year ago. Results from the fourth quarter a year earlier were inflated by a gain from the bank’s sale of its stake in TD Ameritrade to Charles Schwab Corp.

Adjusted to exclude certain items, including that gain, TD said it earned $ per share. On average, analysts expected adjusted earnings per share of $, according to Refinitiv.

- James Bradshaw

Shares of Descartes Systems Group Inc. (DSG-T) rose following better-than-expected third-quarter results.

After the bell on Wednesday, the Waterloo, Ont.-based tech firm reported revenue of US$million, up 24 per cent year-over-year t mobile name id app exceeding the projection of the Street (US$million). Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 32 per cent to US$million, exceeding the company’s per-cent long-term target and also topping the consensus estimate (US$million).

“Q4 baseline implies that double-stacked organic growth is likely to reach all-time highs next quarter,” said RBC Dominion Securities analyst Paul Treiber in a research note. “Although trade volumes are elevated at the moment, we believe that Descartes is also benefiting from stronger structural demand for logistics software, which is augmenting Descartes’ capital allocation model.”

Celestica Inc. (CLS-T) increased on the premarket announcement of gaining approval to launch a normal course issuer bid with the intent to repurchase for cancellation up to million shares, or approximately 10 per cent of the public float.

The bid will be funded using existing cash resources and draws on its credit facility.

“The Company believes that the purchases are in the best interest of the Company and constitute a desirable use of its funds,” it said.

AutoCanada Inc. (ACQ-T) jumped a day after it announced it has completed the acquisition of 11 dealerships from the Autopoint Group with dealerships across Southwestern Ontario. The dealerships generate annual revenue of over $ million, selling and servicing Honda, Acura, Nissan, Infiniti, Subaru, and Kia vehicles.

The company said the deal provides geographic diversification by more than doubling its Ontario footprint from seven to 18 dealerships.

“The acquisition adds significant size, scale and scope to AutoCanada’s existing platform in a growing market,” said Paul Antony, AutoCanada’s executive chairman in a release.

In a research note, Stifel analyst Maggie MacDougall said: “The change in our forecast causes our target to increase to $ from $ Recent market volatility aside, we have been perplexed with the steep sell off in ACQ shares following a solid Q3 result and against the backdrop of a still ongoing turnaround that has momentum, supply demand conditions that are supportive of the business, and a large fully funded M&A pipeline. The company still has material deal flow left in its pipeline, and we believe more acquisitive growth will come either in Q4 or early in the New Year. We do not model unannounced M&A in our forecast, and the stock is now trading at times forward EBITDA which is the lowest multiple it has traded at since We think this is an early Christmas gift and bank of america common stock dividend investors Buy ACQ.”

Goodfood Market Corp. (FOOD-T) turned positive after it announced the departure of Gregory Christopher, executive vice-president of operations, effective today, amid a review of its organizational structure.

The company said chief operating officer Neil Cuggy, will assume the role as the company “continues to focus investments into its rapidly growing on-demand grocery operations.”

The company said it has been looking to cut costs to drive margin improvement and “align our resources with the agility required to capture leading online grocery market share with our on-demand growth platform.”

The company said it started a review of its organizational structure “in light of the progressive completion and implementation of systems and improvement in processes coupled with aligning our workforce towards our future catalyst for growth, on-demand groceries, meal kits and ready-to-eat meals.”

It expects the initiatives to generate $million to $million of annualized cost savings.

Boeing Co. (BA-N) rose in the wake of China’s aviation regulator clearing its Max on Thursday to return to flying with technical upgrades more than two years after the plane was grounded worldwide following two fatal crashes.

China is the last major market where the Boeing Max was awaiting approval after the United States allowed flights to resume in December and European Union regulators gave permission in January. Brazil and Canada also have given approval.

Governments grounded the Boeing Max after a total of people were killed in the crashes of a Lion Air flight in Indonesia on Oct. 29,and an Ethiopian Airlines flight on March 10,

Investigators blamed a computer system that pushed the plane’s nose downward in flight and couldn’t be overridden by pilots.

Chinese pilots will need to complete new training before commercial flights can begin, the Civil Aviation Administration of China said on its website. It said Boeing Co. is required to install bank of america common stock dividend software and components.

“CAAC considers the corrective actions adequate to address this unsafe condition,” the agency said in an airworthiness directive.

China has the largest Max fleet after the United States, with 97 aircraft operated by 13 carriers before the suspension, according to state media.

China is especially important to Boeing and its European rival, Airbus Industrie, because they are counting on its expanding travel market to propel sales growth. North American and European demand are forecast to be flat in coming decades.

In January, Boeing agreed to a US$billion settlement with the U.S. Justice Department to avoid criminal prosecution for misleading regulators about safety of the Max. Most of the money will go to airlines that bought the jets.

Chesapeake Energy Corp. (CHK-Q) increased as it authorized the repurchase of up to US$1-billion of common stock, becoming the latest shale producer to focus on shareholder returns, as energy prices recover from pandemic lows.

Producers are benefiting from a run-up in oil and natural gas prices, as the market rebounds from blistering losses during the pandemic.

Most publicly traded energy companies have vowed to focus on shareholder returns over increasing production.

“We estimate that total cash dividends to be paid to shareholders in will range from $ million to $1 billion, based on our recent outlook and the current commodity price environment,” Chesapeake Chief Executive Officer Nick Dell’Osso said.

Oil majors Chevron Corp. (CVX-N) and Exxon Mobil Corp. (XOM-N) are among the other companies that have resumed share repurchases after halting them last year due to a pandemic-induced slump in oil prices.

Chesapeake was one of the worst-hit, filing for bankruptcy last year due to its ballooning debt.

On the decline

Canadian Imperial Bank of Commerce (CM-T) was lower in the wake of reporting higher fourth-quarter profit and raised its dividend by 10 per cent but earnings still fell short of analysts’ expectations as revenue levelled off and expenses climbed higher.

Canada’s fifth-largest bank raised its quarterly dividend to $ per share and announced a share buyback plan that would allow it to repurchase up to 10 million shares, or per cent of shares outstanding.

All four of CIBC’s major business units reported profits that rebounded from depressed bank of america common stock dividend in the fourth-quarter last year, when banks were building reserves against potential losses from the COVID pandemic. But each division’s earnings fell when compared with the third quarter this year.

For the quarter that ended Oct. 31, CIBC earned $billion, or $ per share, compared with $billion, or $ per share, in the same period last year.

Adjusted to exclude certain items, CIBC said it earned $ per share, but analysts and predicted adjusted earnings per share of $

- James Bradshaw

See also: RBC and National Bank earnings fall short as revenue stalls

Newmont Corp. (NGT-T) was lower after it forecast gold production of million ounces forup from the 6 million ounces it expects to produce this year, highlighting output increases from the Boddington mine in Australia and Ahafo in Ghana.

Total gold production combined with other metals is expected to be million gold equivalent ounces inthe company said.

Gold prices have gained recently as investors seek safer assets amid market volatility caused by the Omicron coronavirus variant.

Newmont said it expects all-in sustaining cost (AISC) of US$1, per ounce inimproving to between US$ and US$1, per ounce longer term. AISC is a key industry metric used by gold miners to measure overall cost of producing gold.

The Denver-based company expects its full-year gold production to improve to between million and million ounces over a longer period.

A day after falling per cent. Canadian winterwear producer Canada Goose Holdings Inc. (GOOS-T) slid further despite running into further controversy in China due to a dispute over its return policies, with a city consumer watchdog calling it into meetings and other groups accusing it of “bullying” customers.

Canada Goose comes under fire again from Chinese state media, regulators after returns policy sparks furor

The latest furore against the premium down jacket maker comes just three months after the winterwear brand was fined for false advertising and as Chinese regulators have become more active protecting consumer rights.

Canada Goose became a hot topic on Chinese social media in recent days over its handling of a case involving a customer who wanted a refund of her purchases amounting to 11, yuan ($1,) after finding quality issues.

She said she was told by Canada Goose that all products sold at its retail stores in mainland China were strictly non-refundable, according to her account which went viral online.

Canada Goose declined to comment on the specific case to Reuters but said that customers were eligible to receive a refund within 14 days, based on Chinese law, if their purchase had issues with materials or craftsmanship - a stance that was also reported by Chinese media.

That, however, has failed to quell criticism of the brand.

“No brand has any privileges in front of consumers,” the government-backed China Consumer Association (CCA) said in an opinion piece posted on its website on Thursday morning.

“If you don’t do what you say, regard yourself as a big brand, behave arrogantly and in a superior way, adopt discriminatory policies, be condescending and bully goodyear debit card check balance, you will for sure lose the trust of consumers and be abandoned by the market,” the CCA said.

Apple Inc. (AAPL-Q) fell after Bloomberg News reported it has told its parts suppliers that demand for the iPhone 13 lineup has slowed, signaling that some consumers have decided against acquiring the hard-to-find item.

The company had cut production of iPhone 13 by as many as 10 million units, down from a target of 90 million, due to a global chip shortage, but now it has informed vendors that even those orders may not materialize, the report said.

Shares of iPhone component and semiconductor suppliers Qualcomm, Skyworks, Europe’s ASML and Infineon were also down.

The holiday season is Apple’s biggest quarter in terms of revenue and a test for consumers’ interest in the company’s latest bank of america common stock dividend and MacBooks.

Analysts had expected demand to remain steady shortly for new products, but they lowered shipping estimates as supply chain issues burdened phone chase bank opening hours saturday, with many retail partners warning about product shortages ahead of the holiday shopping season.

Apple Chief Executive Officer Tim Cook warned in October that the impact of supply constraints, which cost the company US$6-billion in sales in the fourth quarter and was affecting most of the company’s products, will be worse during the holiday quarter even as demand for the new lineup was robust.

The global chip crunch, initially due to high demand for smartphones and personal gadgets during the coronavirus bank of america common stock dividend, has affected the auto industry and disrupted production at companies ranging from Apple to GM.

Nikkei reported last month that Apple had cut back production of iPad tablets to allocate more components to iPhone

See also: Thursday’s analyst upgrades and downgrades

Jack Dorsey-led payments company Square Inc. (SQ-N) was lower after it said late Wednesday it was changing its name to Block Inc.

The San Francisco-based company said the name “Square” had become synonymous with the company’s seller business. It added there would be no organizational changes and its different business segments will continue to maintain their respective brands.

The move comes days after Mr. Dorsey stepped down from his role as chief executive officer at Twitter Inc.

The digital payments giant’s crypto arm Square Crypto will change its name to Spiral, the company said.

The new name would become effective on or about Dec. 10, Square said, but the “SQ” ticker symbol on the New York Stock Exchange would not change at this time.

Shares of Grab (GRAB-Q), Southeast Asia’s biggest ride-hailing and delivery firm, fell in their Nasdaq debut on Thursday following its record US$billion merger with a blank-cheque company.

The backdoor listing on Nasdaq marks the high point for the nine-year-old Singapore company that began as a ride-hailing app and now operates across cities in eight countries, offering food deliveries, payments, insurance and investment products.

Grab’s shares rose as much as 21per cent minutes after the listing before retreating to trade lower.

“The price makes no difference to me. I’m going to celebrate tonight and get back to work tomorrow,” Chief Executive Anthony Tan told Reuters just after the shares started trading.

Grab kicked off the biggest U.S. listing by a Southeast Asian company with a bell-ringing event in Singapore, hosted by Nasdaq and Grab’s executives.

See also: Grab’s Nasdaq debut to set tone for Southeast Asian tech listings


With files from Brenda Bouw, staff and wires


What Is the Formula for Calculating Earnings per Share (EPS)?

Earnings per share (EPS) is calculated by determining a company's net profit and allocating that to each outstanding share of common stock

You'll notice our example above used the average outstanding shares in the formula. Typically, an average is used, since companies may issue or buy back stock throughout the year making the true EPS difficult to pin down. Since the number of shares can frequently change, using an average of outstanding shares gives a more accurate picture of the earnings for the company. 

EPS=average outstanding common sharesnet income​

Key Takeaways

  • Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock.
  • EPS (for a company with preferred and common stock) = (net income - preferred dividends) ÷ average outstanding common shares
  • EPS is sometimes known as the bottom linethe final statement, both literally and figuratively, of a firm's worth.

The Significance of Earnings Per Share (EPS) 

EPS is one measure that can serve as a proxy of a company's financial health. If all of a company's profits were paid out to its shareholders, EPS is the portion of a company's net income that would be allocated to each outstanding share.

EPS is typically used by analysts and traders to gauge the financial strength of a company. It is often considered to be one of the most important variables in determining a stock's value. Many investors still look to EPS as a gauge of a company's profitability. In fact, it is sometimes known as the bottom linethe final statement, both literally and figuratively, of a firm's worth.

A higher EPS means a company is profitable enough to pay out more money to its shareholders. For example, a company might increase its dividend as earnings increase over time.  

Investors typically compare the EPS of two companies within the same industry to get a sense of how the company is performing relative to its peers. Investors may also pay attention to trends in EPS growth in order to get a better idea of how profitable a company has been in the past and to get a sense of its future prospects. A company with a steadily increasing EPS is considered to be a more reliable investment than one whose EPS is on the decline or varies substantially.

EPS is also an important variable in determining a stock's value. This measurement figures into the earnings portion of the price-earnings (P/E) valuation ratio. The P/E ratio is one of the most common ratios utilized by investors in determining whether a company's stock price is valued properly relative to its earnings. 

Calculating Earnings Per Share

EPS is calculated as follows:

EPS=average outstanding common sharesnet income−preferred dividends​

As an example, suppose the fiscal year net income for Bank of America (BAC). Its net income was $ billion. Its preferred stock dividends bank of america common stock dividend $ billion. Its average outstanding common shares stood at billion. This puts its EPS at:

EarningsEPS​= billion− billion= billion (net profit)= billion billion​=$​



EPS, which accounts for the impact of convertible preferred shares, options, warrants, and other dilutive securities, was at $

Companies may choose to buy back their own shares in the open market. In fact, Bank of America actually did this in In doing so, a company can improve its EPS (because there are fewer shares outstanding) without actually improving its net income. In other words, the net income gets divided up by a fewer number of shares, thus increasing the EPS. 

To make the example easy, let's say that Bank of America bought 1 billion shares back in through its share repurchase program. Its EPS would have been:

​EPS= billion (AOS)$ billion (NI-PD)​=where:NI-PD=Net income-preferred dividendsAOS=Avg. outstanding shares​

You'll notice our example above used the average outstanding shares in the formula. Typically, an average is used, since companies may issue or buy back stock throughout the year making the true EPS difficult to pin down. Since the number of shares can frequently change, using an average of outstanding shares gives a more accurate picture of the earnings for the company. 

Earnings Per Share Explained

Types of EPS

There are actually three basic types of EPS numbers, based on where the data comes from.

Trailing EPS

A company's trailing EPS is based on the previous year’s number. It uses the previous four quarters of earnings in its calculation, and has the benefit of using actual numbers instead of projections. Most P/E ratios are calculated using the trailing EPS because it represents what actually happened, and not what might happen. Although the figure is accurate, the trailing EPS is "old news" and many investors will also look at current and forward EPS figures. We used a trailing EPS in our Bank of America example.

Current EPS

This measurement typically includes the four quarters of the current fiscal year, some of which may have already elapsed, and some of which are yet to come. As a result, bank of america common stock dividend of the data will be based on actual figures and some will be based on projections.

Forward EPS

Forward EPS is based on future numbers. This measurement includes projections for some period of time in the future (usually the coming four quarters). Forward EPS estimates can be made by analysts, or by the company itself. While this number is based on estimates and not on actual data, investors are often very interested in forward EPS because, in general, investing is predicated on estimates of a company's future earning potential.

Investors often compare these different EPS calculations. For example, they may compare the forward EPS (that makes future projections) with the company’s actual EPS for the current quarter. If the actual EPS falls short of forward EPS projections, the stock price may fall. On the other hand, if the actual EPS beats its estimates, the stock may experience a rally.

The Bottom Line

EPS becomes especially meaningful when investors look at both historical and future EPS figures for the same company, or when they compare EPS for companies within the same industry. Bank of America, for example, is in the financial services sector.

As a result, investors should compare the EPS of Bank of America with other stocks in the financial services field, such as JPMorgan Chase (JPM) or Wells Fargo (WFC). Since EPS is only one number, it’s essential to use it in conjunction with other performance measures before making any investment decisions.


SAN JUAN, Puerto Rico--(BUSINESS WIRE)--Nov 14, First BanCorp. (the “Corporation”) (NYSE: FBP), the bank holding company for FirstBank Puerto Rico, announced today that its Board of Directors has declared a quarterly cash dividend of $ per share on its outstanding common stock. The dividend will be payable on December 14, to shareholders of record at the close of business on November 30,

“We are pleased to reinstate a quarterly cash dividend, which is a reflection of our confidence in the Corporation’s financial and capital strength,” said Aurelio Alemán, President and CEO of the Corporation. “We believe that the considerable achievements we’ve made over the past several years have allowed us to create value for our shareholders, significantly improving the Corporation’s capital and risk profile while returning the Corporation to a sustainable and profitable business model, even in a challenging economic environment,” continued Alemán.

The Corporation’s ability to continue to declare and pay dividends on the Common Stock is dependent on certain Federal regulatory considerations, including the guidelines and regulations of the Federal Reserve Board regarding capital adequacy and distributions and on the Corporation’s agreement with the Federal Reserve Bank of New York (the “Federal Reserve”) as to the payment of dividends to stockholders.

About First BanCorp.

First BanCorp. is the parent corporation of FirstBank Puerto Rico, a state-chartered commercial bank with operations in Puerto Rico, the U.S. and British Virgin Islands and Florida, and of FirstBank Insurance Agency, LLC. Among the subsidiaries of FirstBank Puerto Rico are First Federal Finance Limited Liability Company, a small loan company, and FirstBank Puerto Rico Securities Corp., a broker-dealer subsidiary. First BanCorp’s shares of common stock trade on the New York Stock Exchange under the symbol “FBP.”

Safe Harbor

This press release may contain “forward-looking statements” concerning the Corporation. The words or phrases “expect,” “anticipate,” “intend,” “look forward,” “should,” “would,” “believes” and similar expressions are meant to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act ofas amended, and Section 21E of the Securities Exchange Act ofas amended, and are subject to the safe harbor created by such sections. Such forward-looking statements include, but are not limited to, statements regarding the Corporation’s ability to declare dividends on the Corporation’s Common Stock in any future periods and the Corporation’s intention to request the Federal Reserve’s approval to enable it to continue to pay quarterly dividends on its Common Stock once regulatory approvals expire. Such statements are subject to known and unknown risks, uncertainties and contingencies that may cause actual results to differ materially from the expectations, intentions, beliefs, plans, estimates or predictions of the future expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to the factors described in the Corporation’s Annual Report on Form K, in its Quarterly Reports on Form Q and in other filings with the SEC. The Corporation does not undertake, and specifically disclaims any obligation, to update any “forward-looking statements” to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by the federal securities laws.

View source version on

CONTACT: First BanCorp.

John B. Pelling III

Investor Relations Officer

[email protected]



SOURCE: First BanCorp.

Copyright Business Wire

PUB: 11/14/ PM/DISC: 11/14/ PM


In its latest statement, released on Nov. 3, the Federal Open Market Committee unsurprisingly held the federal-funds rate at %%. Nobody expected a change in rates at this meeting, instead tapering was the main focus. The Fed’s tapering announcement was in line with market expectations, a taper of $15 billion per month ($10 billion of treasuries, $5 billion of MBS), with room to adjust along the way. This baseline tapering should lead to the end of asset purchases by sometime in June.

The overall commentary in the release changed slightly. The Fed referred to factors driving higher inflation as “expected to be transitory” rather than simply “transitory,” which we view as an acknowledgement that inflation has come in above what the Fed expected. The new statement also linked an bank of america common stock dividend of supply constraints” to employment gains and a reduction in inflation, an acknowledgement that the supply side is the key determining factor at this point.

We think continued issues within labor supply will be the driving issue determining the timing of rate hikes. While we think it will take years for the labor market to reach its full potential, the Fed will likely start raising rates before we reach what we view as full employment, so the timing is still a bit ambiguous. We think the market may be slightly overestimating the Fed’s reaction function with regards to inflation. We expect inflation may remain slightly above 2% for the next several years, but that this will not force the Fed’s hand on rate hikes. We are leaving our expectations for a single rate hike in lateand a single hike in early to mid unchanged. This is close to, but slightly below, market expectations for roughly 3 hikes by early to mid The risks to our outlook are admittedly to the upside, with higher inflation and a more aggressive Fed reaction seeming to be more likely risks than the opposite.


Bank of America's Dividend Lags Its Peers -- but That Could Soon Change

Bank of America( BAC % ), the second-largest bank in the U.S. by assets, has achieved a lot over the past year. It survived a global pandemic and performed well through an intense economic downturn and in an extremely low-interest-rate environment. It also received a big nod of approval from legendary investor Warren Buffett: Berkshire Hathaway( BRK.A % )( BRK.B % ) bought more than $2 billion worth of the bank's stock, even as it eliminated or trimmed most of the other bank holdings in its portfolio.

Despite all this, its dividend payouts have lagged those of its big-bank rivals. But considering that its performance is now at the top end of its peer group, I expect this may soon change.

Dividend yield

To see how Bank of America's payouts have come up a bit short, let's first look at the most common metric investors use to gauge them: dividend yield. That, simply, is the sum of annual dividend payments divided by the company's share price. Below, I took each bank's total  dividend payouts fromand divided by its closing share price Friday.

BankDividend Yield
JPMorgan Chase( JPM % )%
Bank of America%
Citigroup ( C % )%
Wells Fargo ( WFC % )%

Source: Bank financial statements

At %, Bank of America's yield trails them all. Additionally, it's slightly behind the average dividend yield of the banking sector, which is currently a little over 2%, according to S&P Global Market Intelligence.

Bank of America

Image source: Bank of America

Dividend payout ratio

One can also look at a company's dividend payout ratio -- the percentage of its earnings that a company allocates to dividends on an annual basis.

BankDividend Payout
Dividend Payout Ratio
JPMorgan Chase%32%
Bank of America%24%
Wells Fargo%47%

Source: Bank financial statements

Bank of America had the smallest dividend payout ratio in both and The ratios last year were elevated because earnings took a hit due to the pandemic. Banks tend to be a little more conservative than average with their dividend payout ratios. In some other sectors, it would not be uncommon to find payout ratios ranging from 50% to 70%. But the big banks have also been using some of their earnings to repurchase billions of dollars worth of their own stock in recent years. 

Excess capital

The other consideration bank of america common stock dividend it comes to bank dividends specifically involves their regulatory capital requirements. A bank must maintain a certain amount of capital in relation to its risk-weighted assets, so that even if it must absorb significant unexpected loan losses, it will still be able to lend during an economic downturn.

For this reason, banks' ability to pay out dividends and buy back stock is limited by regulators. One measure of capital relative to risk-weighted assets is the common equity tier 1 (CET1) capital ratio. If a bank falls below its CET1 minimum, it can still return capital to shareholders, but it may be limited in how much it can return, so banks try to avoid going anywhere near that threshold unless they absolutely have to.

Required CET1 RatioExcess Capital
JPMorgan Chase%%~$31 billion
Bank of America%%~$36 billion
Citigroup%10%~$21 billion
Wells Fargo%9%~$31 billion

Source: Bank financial statements and earnings transcripts

As you can see above, all four of the big U.S. banks have a ton of excess capital above their required CET1 minimum ratios. And normally, that excess capital will not get depleted because banks typically make capital distributions from their earnings each quarter. Leftover earnings essentially get added to the excess capital cushion. Even so, Bank of America's $36 billion in excess capital is a huge amount and significantly more than the other banks have.

Catching up with competitors

As Bank of America has said before, it doesn't have a lot of ways to spend all of its excess capital. It can't go out and buy another depository institution because U.S. law prohibits any bank from purchasing its way into owning more than 10% of all U.S. deposits. In other words, two institutions can't combine if the post-merger bank will hold more than 10% of those deposits.

As it happens, Bank of America already does hold more than 10% of all U.S. deposits -- but it grew into that status organically, and its other large acquisitions since it did so involved institutions that federal regulations didn't consider "banks."

So Bank of America will continue to grow organically and invest in its operations, but that spending can only reduce its excess capital by so much.

And yes, it will likely buy back tens of billions of dollars worth of its stock over the next few years, but so will the other big banks. Bank of America is also arguably in the best position among its peers to return capital to shareholders. Not only does it have the most excess capital, but it's not dealing with any potential issues in regards to the supplementary leverage ratio like JPMorgan. It's also not dealing with heavy regulatory issues that require major investments to correct as are Wells Fargo and Citigroup.

That's why I would expect that management at Bank of America would want to boost its dividend payout until it was more in line with its peers -- or even to bump its yield up until it surpasses theirs, because that's another way to stand out. And if you're an institution with $36 billion in excess capital, and you're somewhat limited in terms of ways that you can deploy it, why not start by being more aggressive with your dividend?

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory bank of america common stock dividend. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Dividend information

Latest announced dividend payment

RateEx-dividend DateRecord DatePayment Date
$ shareNov. 10, Nov. 12, Dec. 10,

Three ways for shareholders to receive dividends

For dividends paid to shareholders who have shares registered in their name, there are three alternatives:

  • Direct Deposit: The dividend payment is transferred by electronic funds on the dividend payable date directly to your checking or savings account.
  • Check: You may have your dividend checks sent directly to your residence or bank.
  • Dividend Reinvestment: You may automatically reinvest all or part of your dividends in additional shares of ExxonMobil stock through the Computershare Investment Plan for Vermont food bank burlington Common Stock. 

For bank of america common stock dividend information on dividend payment options, call:
ExxonMobil Shareholder Services

(within the U.S. and Canada)
(outside the U.S. and Canada)

1Ex-dividend date is one business day before the record date. Dividends are paid to shareholders of record on the record date. Shares must be purchased before the ex-dividend date to settle by the record date and be entitled to receive the dividend.

1st Quarter $ $ $$$$$$$$$$$$
2nd Quarter $ $  $$$$$$$$$$$$
3rd Quarter $ $  $$$$$$$$$$$$
4th Quarter $ $ $$$$$$$$$$$$
Total $ $ $$$$$$$$$$$$

ExxonMobil's dividend payments to shareholders have grown at an average annual rate of % over the last 38 years.

*Prior period amounts restated to reflect two-for-one stock split effective June 20,

Dividends / Warrants / Distribution
Historical dividend information (from to present) is available for download:

bank of america common stock dividend
bank of america common stock dividend

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