Summary
Bank of America Corporation (BAC) announced a significant capital return program on June 28, 2018. The company's Board of Directors plans to increase the quarterly common stock dividend to $0.15 per share, effective from the third quarter of 2018. This move signals continued confidence in the company's financial health and its ability to generate consistent returns for shareholders. Furthermore, the Board has authorized a substantial share repurchase program amounting to $20.6 billion for the period of July 1, 2018, through June 30, 2019. This includes $0.6 billion specifically designated to offset shares issued under employee equity compensation plans. The repurchase authorization, which replaces a prior one expiring on June 30, 2018, covers both common stock and warrants. The company also confirmed that it received no objection from the Federal Reserve's Board of Governors regarding its 2018 capital plan, including these dividend and repurchase actions, following the completion of the Comprehensive Capital Analysis and Review (CCAR).
Key Highlights
- 1Planned increase in quarterly common stock dividend to $0.15 per share, starting Q3 2018.
- 2Authorized share repurchase program of $20.6 billion from July 1, 2018, to June 30, 2019.
- 3Share repurchase program includes $0.6 billion for equity compensation plans.
- 4New repurchase authorization replaces the prior one expiring on June 30, 2018.
- 5Federal Reserve's Board of Governors did not object to the company's 2018 capital plan, including dividend and repurchase actions, after CCAR.
- 6Company's capital plan, including dividend and repurchase activities, has been cleared by the Federal Reserve.