Summary
Bank of America Corporation (BAC) announced on July 24, 2024, a significant update to its capital return strategy through a press release filed with the SEC. The Board of Directors has authorized a new $25 billion common stock repurchase program, set to commence on August 1, 2024. This new program will supersede the existing one, which was originally adopted in October 2021 and modified in September 2023, and is set to expire on the same date the new program begins. In addition to the substantial share buyback authorization, the Board also declared the regular quarterly cash dividend on its common stock, maintaining it at $0.26 per share. A quarterly dividend of $1.75 per share was also declared for the 7% Cumulative Redeemable Preferred Stock, Series B. These actions demonstrate the company's commitment to returning capital to shareholders through both buybacks and consistent dividend payments.
Key Highlights
- 1Bank of America's Board of Directors authorized a new $25 billion common stock repurchase program.
- 2The new repurchase program is effective August 1, 2024, replacing the previous program.
- 3The expiring common stock repurchase program was originally authorized in October 2021 and modified in September 2023.
- 4The regular quarterly cash dividend on common stock was declared at $0.26 per share.
- 5A quarterly cash dividend of $1.75 per share was declared for the 7% Cumulative Redeemable Preferred Stock, Series B.
- 6The filing was made via an 8-K report on July 23, 2024, announcing events from July 23-24, 2024.
- 7The press release detailing these announcements is included as Exhibit 99.1.