Bank of America Corp Quintuples Its Dividend
The results of the Fed's Comprehensive Capital Analysis and Review, or CCAR, round of stress tests are out, and Bank of America has officially been given the go-ahead to bump up its dividend, and initiate a share repurchase program.
The test, which includes three different scenarios at varying levels of crisis severity to show how each bank would fare if another crisis were to occur, showed that at the very worst level, Bank of America's numbers didn't look great, forcing the bank to scale back the dividend and share repurchase programs that it wanted.
However, it was still granted a non-objection to $4 billion in share repurchases, and an increase in its quarterly dividend from one cent to five cents, for a total of $0.20 per share per year.
In this segment of Thursday's Where the Money Is, Motley Fool banking analysts Matt Koppenheffer and David Hanson take a look at Bank of America today.
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The article Bank of America Corp Quintuples Its Dividend originally appeared on Fool.com.David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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