A Key Catalyst for Bank of America
The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics around the investing world.
Bank of America shares have been on a good run (up more than 60% YTD), but Anand thinks there's a big catalyst that will drive shares higher. That catalyst is an eventual dividend raise. Competitors including JPMorgan Chase and Wells Fargo have already gotten Federal Reserve clearance to raise their non-trivial dividends, but Bank of America (and Citigroup) hasn't. Once that penny-per-quarter dividend is increased (which could be a while, but probably sooner than investors think), Bank of America's shares should rise.
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At the time this article was published Anand Chokkavelu owns shares of Bank of America, JPMorgan Chase, Citigroup, and Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo and has created a covered strangle position in Wells Fargo.Motley Fool newsletter services recommendWells Fargo. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.