Bank of America Corp (NYSE: BAC) raised its quarterly dividend by about 9.0% on Thursday. Its shares are still trending down at writing.
Bank of America is in talks with the Fed
The financial services behemoth increased its third-quarter dividend from 22 cents to 24 cents today that translates to a yield of about 3.3%.
In June, the Fed’s annual stress test confirmed that it had sufficient capital to weather a severe recession. Still, the Bank of America argued it actually had more money than the central bank suggested.
On Thursday, the Charlotte-headquartered lender said it was in talks with the Federal Reserve over discrepancies in the results of the annual stress test and its internal evaluation.
Bank of America Corp is scheduled to report its second quarter financial results on July 17th.
CFRA is bullish on Bank of America stock
Versus its year-to-date high, Bank of America stock is currently down more than 20% that, as per a CFRA analyst, is an opportunity to buy a quality name at a deep discount.
Explaining his bullish view on the investment bank, Ken Leon said today on CNBC’s “Squawk Box”:
Look at operating performance of Q1 or even for Q2, we see them year-on-year having much higher revenue and earnings. Bank of America is executing. It’s not a problem child in the large banks.
Consensus is for the Bank of America to earn 85 cents a share in its current fiscal quarter versus 73 cents per share a year ago. Last week, Dick Bove – a veteran bank analyst criticised this bank for its $100 billion problem as Invezz reported here.
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