Summary
Bank of America Corporation (BAC) has announced plans to increase its quarterly common stock dividend to $0.26 per share from $0.24 per share, effective in the third quarter of 2024, subject to Board of Directors approval. This move signals confidence in the company's financial stability and commitment to returning capital to shareholders. Additionally, the company disclosed its results from the Federal Reserve's 2024 Comprehensive Capital Analysis and Review (CCAR). Based on these results, BAC's stress capital buffer (SCB) will be set at 3.2% and its CET1 minimum requirement will be 10.7% upon finalization, effective from October 1, 2024, through September 30, 2025. The company's current CET1 ratio of 11.9% as of March 31, 2024, comfortably exceeds its existing regulatory minimum, indicating robust capital adequacy.
Key Highlights
- 1Planned increase in quarterly common stock dividend to $0.26 per share, up from $0.24.
- 2Dividend increase is expected to commence in the third quarter of 2024.
- 3Dividend increase is subject to approval by Bank of America's Board of Directors.
- 4Results from the Federal Reserve's 2024 Comprehensive Capital Analysis and Review (CCAR) have been released.
- 5Bank of America's stress capital buffer (SCB) will be 3.2% when finalized.
- 6The CET1 minimum requirement will be 10.7% when finalized.
- 7The new SCB and CET1 minimum requirement will be effective from October 1, 2024, to September 30, 2025.