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CHARLOTTE - Bank of America Corporation (NYSE:BAC), currently trading near its 52-week high with a market capitalization of $358 billion, announced Wednesday it will increase its quarterly cash dividend by 8% to $0.28 per share and has authorized a new $40 billion stock repurchase program. According to InvestingPro analysis, the bank appears undervalued based on its Fair Value metrics.
The dividend increase, up $0.02 from the prior quarter, will be payable on September 26, 2025, to shareholders of record as of September 5, 2025, according to a press release statement. This marks the bank’s 11th consecutive year of dividend increases, with an impressive track record of maintaining dividend payments for 55 years straight. InvestingPro data shows the current dividend yield stands at 2.18%.
The new stock repurchase program will become effective August 1, 2025, replacing the current program which expires on that date. The existing program had approximately $9.1 billion in common stock repurchases remaining as of June 30, 2025.
The banking giant stated the authorization will provide "additional capital return flexibility" while maintaining regulatory capital levels above minimum requirements. The timing and amount of repurchases will depend on various factors including the company’s capital position, liquidity, and market conditions.
Additionally, the Board declared a regular quarterly cash dividend of $1.75 per share on the 7% Cumulative Redeemable Preferred Stock, Series B, payable on October 24, 2025, to shareholders of record as of October 10, 2025.
Bank of America serves approximately 69 million consumer and small business clients across the United States with about 3,700 retail financial centers and 15,000 ATMs, while also operating in more than 35 countries globally.
In other recent news, Bank of America reported its second-quarter earnings, revealing earnings per share of $0.89, which included a 6-cent benefit from a lower tax rate. The bank’s net interest income slightly missed consensus expectations, as noted by UBS analyst Erika Najarian, due to a larger markets balance sheet. UBS has reiterated its Buy rating with a $55.00 price target. Similarly, JPMorgan maintained its Overweight rating and set a $48.00 price target, noting that while Bank of America’s net interest income is recovering, it is doing so modestly. The bank’s Board of Directors has also announced regular cash dividends on several series of preferred stock, with payments scheduled for August and September 2025. Additionally, Morgan Stanley has hired Ashish Kumbhat from Bank of America to co-lead its bank advisory group. This move is part of Morgan Stanley’s efforts to strengthen its bank advisory division. These developments reflect ongoing activities and strategic decisions at Bank of America.
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