Bank of America (BAC) DIvidends Date & History

Key Takeaways

• Bank of America pays a quarterly dividend of $0.28 per share, for an annualized total of $1.12.
• The current dividend yield stands at approximately 1.9%.
• The company has raised its dividend for 13 consecutive years, with recent annual growth around 8%.
• The payout ratio remains conservative at roughly 27-30%, indicating strong earnings coverage.
• Dividends are well-supported by robust free cash flow and record net income levels.
• Compared to peers, the yield is modest but offers reliable growth potential for income-focused investors.

Dividend Overview

Bank of America Corporation (BAC) maintains a quarterly dividend payment schedule. The most recent quarterly dividend is $0.28 per share, following an increase implemented in 2025. This produces an annualized dividend of $1.12 per share and a current yield near 1.9%. The bank is viewed as a dividend growth stock rather than a high-yield name, emphasizing steady increases supported by its diversified banking operations and strong capital position.

Dividend History and Growth

BAC has demonstrated consistent dividend growth, raising its payout for 13 consecutive years. The quarterly dividend moved from $0.26 to $0.28 in mid-2025, reflecting an 8% increase. Over the past five years, the average annual growth rate has been approximately 8.8%. Payments have remained uninterrupted through economic cycles, underscoring the company's commitment to returning capital to shareholders while maintaining financial flexibility.

Dividend Sustainability and Payout Ratio

The dividend appears highly sustainable. The payout ratio of roughly 27-30% leaves substantial room for future increases and buffers against earnings volatility. Strong earnings coverage, supported by record 2025 net income and positive free cash flow generation, provides ample headroom. Low leverage relative to capital requirements and a solid balance sheet further enhance long-term dividend reliability for BAC.

Dividend Compared to Industry Peers

Within the large-cap banking sector, BAC's yield of about 1.9% is comparable to JPMorgan Chase but trails Wells Fargo's approximately 2.1%. It exceeds Citigroup's lower yield. While the payout is not the highest in the group, BAC stands out for its combination of growth consistency and conservative payout ratio, offering a balanced profile relative to peers.

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Is This Stock Attractive for Dividend Investors?

BAC may appeal to dividend growth investors seeking consistent annual increases alongside a conservative payout ratio that supports sustainability. Long-term investors who prioritize earnings coverage and capital strength over high immediate yield could find the stock suitable. Income-oriented investors preferring higher current yields might consider it less compelling compared to certain peers, though the growth trajectory provides potential for rising income over time. The profile suits those focused on total return and stability within the financial sector.

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