Dow Dividend Checkup: Bank of America

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves discusses topics from across the investing world.

Bank of America has been the No. 1 performer among Dow stocks for 2012. Sadly, at 0.6%, its yield is also the lowest in the Dow. That compares poorly with the Dow average of approximately 3.1%. A while back Mike Mayo, a leading bank analyst, issued a sell on Bank of America because he felt that the company's earnings power is declining. John thinks it has become so big that it's almost unmanageable. There are a lot of risks here, so investors should tread carefully.

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At the time thisarticle was published John Reeveshas no positions in the stocks mentioned above. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo and has the following options: short APR 2012 $21.00 puts on Wells Fargo, short APR 2012 $29.00 calls on Wells Fargo, short OCT 2012 $33.00 puts on Wells Fargo, and short OCT 2012 $36.00 calls on Wells Fargo.Motley Fool newsletter services recommendWells Fargo. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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