01—Abstract
Summary
Summary of the 8-K filed July 24, 2024. Cited figures are marked; the original filing is the authoritative source.
Bank of America (NYSE: BAC) announced on July 24, 2024 two capital return actions.
First, the Board raised the regular quarterly common stock dividend 8% to $0.26a per share from $0.24, payable September 27, 2024 to holders of record as of September 6, 2024. Second, the Board authorized a new $25 billion common stock repurchase program effective August 1, 2024, replacing the current program that expires on that date. As of June 30, 2024, the expiring program had approximately $6.7 billion remaining.
The filing also declared a regular quarterly dividend of $1.75b per share on the 7% Cumulative Redeemable Preferred Stock, Series B, payable October 25, 2024 to holders of record as of October 11, 2024. The company states that capital distributions depend on maintaining regulatory capital above minimum requirements, and that repurchase timing and amount depend on capital position, liquidity, financial performance, stock price, regulatory requirements and market conditions, and may be suspended at any time. For investors, the announcement signals confidence in capital generation and a continued commitment to return excess capital.
The new authorization is roughly four times the remaining capacity under the expiring program, which provides flexibility, but it is an authorization rather than a commitment to specific repurchase volumes. The filing itself contains no new financial results.
02—Key points
Key Highlights
- Common stock quarterly dividend increased 8% to $0.26 per share (up $0.02 from prior quarter), payable September 27, 2024
- New $25 billion common stock repurchase program authorized, effective August 1, 2024
- Replaces the current program expiring August 1, 2024, which had about $6.7 billion remaining as of June 30, 2024
- 7% Cumulative Redeemable Preferred Stock, Series B quarterly dividend declared at $1.75 per share, payable October 25, 2024
- Repurchases may be made via open market or privately negotiated transactions, including Rule 10b5-1 plans, and may be suspended at any time
- Capital distributions remain subject to maintaining regulatory capital above minimum requirements
- Filing contains no updated financial results; the announcement is limited to capital return actions
03—Questions
Frequently Asked Questions
How much is the new dividend and when is it paid?
The quarterly common stock dividend is $0.26 per share, up from $0.24, payable September 27, 2024 to shareholders of record as of September 6, 2024.
How large is the new buyback program and how does it relate to the old one?
The Board authorized a $25 billion repurchase program effective August 1, 2024. It replaces the existing program, which expires that day and had roughly $6.7 billion remaining as of June 30, 2024.
Is the company required to repurchase the full $25 billion?
No. The authorization sets a maximum, not a commitment. Timing and amount depend on capital position, liquidity, earnings, stock price, regulatory requirements and market conditions, and repurchases may be suspended at any time.
What are the preferred stock dividend terms?
The 7% Cumulative Redeemable Preferred Stock, Series B pays $1.75 per share quarterly, payable October 25, 2024 to holders of record as of October 11, 2024.
What could limit future capital returns?
Bank of America states that its ability to make capital distributions depends on maintaining regulatory capital levels above minimum requirements, so regulatory capital constraints could restrict dividends or buybacks.
04—Continue