Summary
Bank of America Corporation (BAC) announced on June 28, 2021, its expectation to increase its quarterly common stock dividend by 17% to $0.21 per share, effective from the third quarter of 2021. This proposed dividend increase is contingent upon approval from the Corporation's Board of Directors, but signals confidence in the company's financial strength and commitment to returning capital to shareholders. Investors should note that this action reflects the company's positive outlook following recent regulatory reviews. Furthermore, the filing details that following the Federal Reserve's 2021 Comprehensive Capital Analysis and Review (CCAR), Bank of America will operate under a preliminary 2.5 percent stress capital buffer starting October 1, 2021. This regulatory requirement will set the minimum Basel 3 common equity tier 1 ratio at 9.5 percent for the period spanning October 1, 2021, to September 30, 2022. This measure indicates a robust capital position and adherence to regulatory capital standards.
Key Highlights
- 1Expected 17% increase in quarterly common stock dividend to $0.21 per share, effective Q3 2021.
- 2Dividend increase is subject to Board of Directors' approval.
- 3Bank of America to implement a 2.5% stress capital buffer starting October 1, 2021.
- 4Minimum Basel 3 common equity tier 1 ratio will be 9.5% from October 1, 2021, to September 30, 2022.
- 5These announcements follow the Federal Reserve's 2021 Comprehensive Capital Analysis and Review (CCAR).
- 6The filing includes a news release dated June 28, 2021, as an exhibit.