Bank of America Is the Big-Bank Holdout After This Year's Stress Tests. Here's What Its Next Move Could Look Like.
After passing bank stress tests, most banks upped their dividends. Bank of America didn't, but it's really just a matter of time.
Overview
Like all of the large banks that underwent the Federal Reserve's bank stress test, Bank of America (NYSE: BAC) passed. However, after passing, many of the other big banks announced sizable dividend increases. For example, Goldman Sachs (NYSE: GS) hiked its dividend by 11%, while Citigroup (NYSE: C) increased its dividend by 12%. Bank of America, by contrast, didn't increase its dividend. But investors shouldn't worry, a dividend hike is likely on the way.
Over the last few years, Bank of America has increased its dividend in the third quarter. The dividend increase is announced alongside second-quarter earnings. Bank of America will report second-quarter earnings in a couple of weeks. Basically, management is simply waiting until the normal time it makes dividend announcements, given how close the results of the Fed stress tests were announced relative to earnings season.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.