Today, as a result of the Federal Reserves stress test it was approved for Bank of America to increase its dividend by 60%. This bring the dividend up to $0.12 from the current level of $0.075. I think that this is a big increase from Bank of America that investors have been waiting to see.
Bank of America got hit hard during the financial crisis and their stock definitely represented this. A lot of investors bought the stock when it was very cheap but got very disheartened when they received very little capital on their investment. For me I feel like I got in at a really good time even though the stock wasn’t dirt cheap, I was able to get in at a good price and then double up when it dropped below my cost basis.
I currently hold 68.219 shares of common stock in Bank of America. This represents my largest holding by market value. This will add $3.07 to my dividend payments and add $12.28 to my projected annual dividend income. Now that is a nice increase for my portfolio. I wish they could all be this large but I am happy to receive any size increase.
Do you own shares of Bank of America too? I look forward to reading everyones thoughts and comments.
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As always I hope that everyone is doing good out there and happy investing.