NEW YORK (Reuters) – Bank of America (BofA) announced on Wednesday that it intends to raise its quarterly common stock dividend from 22 cents per share to 24 cents per share, starting in the third quarter of 2023.
Unlike other major U.S. banks, BofA had delayed its decision on the dividend last week. However, JPMorgan Chase, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley all increased their third-quarter dividends on Friday after passing the Federal Reserve’s stress test.
BofA had mentioned that it was in discussions with the Fed to understand the discrepancies between the central bank’s stress test and the companies’ own results under the Dodd-Frank Act.
On Wednesday, BofA, the second-largest U.S. bank, stated that the discussions are still ongoing.
The Fed’s annual test demonstrated that major lenders, including BofA, have sufficient capital to withstand a severe economic downturn, allowing them to repurchase shares and issue dividends.
Last year, BofA raised its dividend to 22 cents per share, the highest level since the 32 cents paid in 2008…
2023-07-05 16:31:22
Article from finance.yahoo.com
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