Bank of America Announces 17% Hike on Quarterly Cash Dividend

American multinational investment bank and financial services holding company Bank of America Corporation (BAC) has announced a quarterly cash dividend of $0.21 per share, an increase of 17% from its previous dividend of $0.18. The dividend will be paid on September 24, 2021 to shareholders of record as of September 3, 2021.

Following the news, shares of the company gained slightly to close at $38.48 in the extended trading session.

The company’s annual dividend of $0.85 per share now reflects a dividend yield of 2.2% based on Wednesday’s closing price.

Notably, the company has been raising its quarterly dividend consistently over the past seven years, making it an attractive choice for investors. (See Bank of America stock chart on TipRanks)

Recently, Credit Suisse analyst Susan Roth Katzke reiterated a Buy rating on the stock. The analyst, however, raised the price target to $47 from $46, which implies upside potential of 22.2% from current levels.

The stock has a Moderate Buy consensus based on 8 Buys and 5 Holds. The average Bank of America price target of $44.38 implies 15.4% upside potential from current levels.

Bank of America scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to outperform market averages. Shares have gained 58.2% over the past year.

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