Bullish indicating open at $55-$60, IPO prices at $37
CHARLOTTE - Bank of America Corporation (NYSE:BAC), a financial giant with a $352 billion market capitalization and a remarkable 55-year streak of consistent dividend payments according to InvestingPro, announced Friday its Board of Directors has authorized regular cash dividends on several series of the bank’s preferred stock, with payments scheduled for August and September 2025.
The dividend payments span 14 different series of preferred stock with varying rates. For most series, dividends will be paid quarterly, while Series DD and Series FF will receive payments on a semi-annual basis. This diverse dividend structure complements the bank’s common stock dividend yield of 2.21% and reflects its strong financial position, trading at an attractive P/E ratio of 13.7.
Among the announced dividends, the Floating Rate Non-Cumulative Preferred Stock, Series E will pay $0.31548 per depositary share with a record date of July 31 and payment date of August 15. The Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series DD will distribute $31.50000 per depositary share to stockholders of record on August 15, with payment set for September 10.
The highest dividend amounts will go to Series F and Series G preferred stockholders, who will receive $1,272.68711 per share with a record date of August 29 and payment date of September 15.
Other notable distributions include the 6.000% Non-Cumulative Preferred Stock, Series GG at $0.3750000 per depositary share and the 4.250% Non-Cumulative Preferred Stock, Series QQ at $0.2656250 per depositary share, both payable on August 18 to stockholders of record on August 1.
This announcement comes as part of Bank of America’s regular dividend schedule for its preferred stock shareholders, according to the company’s press release statement. InvestingPro analysis suggests the stock is currently undervalued, with multiple positive indicators including 8 analyst upward revisions for the upcoming period. Discover detailed valuation metrics and 10 additional proprietary tips with an InvestingPro subscription.
In other recent news, Bank of America reported its second-quarter 2025 earnings, achieving an earnings per share (EPS) of $0.89, which exceeded the forecasted $0.86. However, the company fell short of revenue expectations, posting $26.5 billion against a forecast of $26.75 billion. Despite this, the bank’s net interest income reached a record high of $14.8 billion, marking a 7% increase year-over-year. Bank of America also conducted $5.3 billion in share buybacks during the quarter, surpassing expectations for capital return to shareholders. UBS has reiterated its Buy rating on the bank, maintaining a price target of $55.00, while JPMorgan kept its Overweight rating with a $48.00 price target. In other developments, Morgan Stanley has hired Ashish Kumbhat from Bank of America to co-lead its bank advisory group, reflecting ongoing shifts in the financial sector. These recent developments highlight Bank of America’s strategic focus on digital transformation and AI initiatives, as well as its resilience in a challenging economic landscape.
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