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Bank of America Corporation Dividends

BAC Stock Analysis

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Section title

Dividend Yield
2.67%
Payout Ratio
33.68%
Dividend Amount Per Share
$0.96
Last Ex-Dividend Date
Sep 06, 2024

BAC Dividend Safety

BAC paid out 33.68% of its $27B earnings as dividends over the last 12 months.

Safe

  1. Very Unsafe

  2. Unsafe

  3. Somewhat Safe

  4. Safe

  5. Very Safe

Dividend Payout Ratio

BAC's Dividend Payout Ratio of 33.684% is considered safe for the Financial Services sector, indicating that the company retains enough earnings to support business growth.

Interest Rate Coverage

BAC's Interest Coverage Ratio of 0.302 poses a risk, signaling financial challenges due to insufficient earnings to cover interest expenses.

Income Quality

BAC shows excellent income quality with a ratio of 1.696. This indicates high-quality earnings and low risk of dividend cuts.

BAC Dividend Growth

Bank of America Corporation(BAC) offers a dividend yield of 2.67% and pays $0.96 in dividends per share. Explore the historical dividend growth of BAC.

Dividend Stability

BAC has maintained stable dividend payments over the past 10 years with no cuts over 5%.

Dividend Growth

BAC's dividend payments have increased by 7.632% annually over the last 5 years.

Earnings Growth

BAC's earnings have shown very poor growth, shrinking by -0.676% over the last 5 years. Poor earnings growth or decline indicates potential struggles to maintain dividend levels, which may lead to cuts and affect overall returns.

BAC Dividend Yield Attractiveness

Bank of America Corporation(BAC) provides a dividend yield of 2.67%. Compare this with the averages of its peers, industry, and sector to see how it stacks up.

Yield %

BAC

Sector

Industry

Peers

2.67%

3.74%

4.20%

4.47%

Dividend Yield

BAC's dividend yield of 2.67% is considered good compared to the sector average of 3.743%, providing a strong safety margin for investors.

BAC Cash Flow

Over the past 12 months, BAC generated $93B in revenue, produced $47B in free cash flow, and distributed $9B in dividends.

100%75%50%25%0%

Free Cash Flow Growth

BAC's free cash flow has decreased by -6.148% annually over the last 5 years, indicating a weak ability to generate cash and support dividend payments.

BAC Free Cash Flow and Dividends Paid

This chart shows the Free Cash Flow (FCF) and the portion of FCF used to pay dividends each year by Bank of America Corporation. The filled portion of the bar represents the dividends paid, while the remaining portion represents the remaining FCF.

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