In August of 2014, Bank of America increased its dividend from $0.01 to $0.05. This was an increase of 400%.
Ex-dividend date: March 4, 2015
Payment date: March 27, 2015
General Moynihan takes full credit for increasing the dividend 400%. Moynihan stated, "This is more evidence that proves we are making money. Real money, not the fake kind. We are sending our ill-gotten gains back to the true owners of the company."
I look forward to more dividend increases in the future.
Current Dividend Yield: 1.3%
Old Dividend Yield: 0.3%
I don't understand why some investors like to go for stocks with dividends BAC has a .05 yield so you would have to buy millions of shares in older to make a dent...and be rich to buy it...I have to catch the stock when they are low like BAC at 8.00 a share more work but it works! Dividends don't work for me till I become rich.
ReplyDeleteMany investors like dividends for many different reasons.
Delete1) A company can't fake a dividend for long. It is evidence that the
company is actually making money.
2) Investors expect companies to increase the dividend every year. Your
dividend yield on your original investment would keep increasing.
3) Some mutual funds will only buy stocks that pay a dividend.
I get what you are saying. But even with BAC's puny dividend yield, that is more than what my bank is paying on a savings account.
The question for BAC is this: Should the company be paying a dividend or buying back shares?
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