BofA boosts dividend to a nickel, sets $4B buyback, settles with FHFA

Forced to resubmit its capital return plan to the Fed and now approved, Bank of America (BAC) announces a boost in its quarterly dividend to $0.05 per share from $0.01 previously (annualized, a 1.16% yield). The buyback amount is $4B, or 232M shares at today's price - roughly 2.2% of the float. Both are about inline with expectations.

In other news BofA settles with the FHFA over all RMBS litigation, agreeing to pay $6.3B and repurchase certain RMBS for about $3.2B. The deal resolves four lawsuits filed against BofA, Countrywide, and Merrill Lynch covering about $57.5B of mortgages.

Press release

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Comments (18)
  • Marthadj
    , contributor
    Comments (22) | Send Message
    Big deal, not impressed. Too little, too late.
    26 Mar 2014, 05:04 PM Reply Like
  • SA_Member_12759281
    , contributor
    Comments (29) | Send Message
    You're right. Stock only up 40% in the past twelve months <slaps head>.
    26 Mar 2014, 05:15 PM Reply Like
  • SA_Member_12759281
    , contributor
    Comments (29) | Send Message
    You mean Goldman Sachs' evisceration of BAC's prospects for capital return from a few days ago turned out to be a totally inaccurate hit piece?


    Wow, imagine that.
    26 Mar 2014, 05:12 PM Reply Like
  • Hello Again 83
    , contributor
    Comments (700) | Send Message
    Very pleased with the 400% increase from the penny dividend. All positives and 6 billion in stock buybacks more than the 5 billion from last year. Feel bad for the Citi folks that stock is getting hammered.
    26 Mar 2014, 05:26 PM Reply Like
  • jackooo
    , contributor
    Comments (1738) | Send Message
    Yeah. The 4 pennies a quarter increase has me thinking about retirement. Whopeee.
    27 Mar 2014, 12:14 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2865) | Send Message
    A step in the right direction.
    26 Mar 2014, 05:44 PM Reply Like
    , contributor
    Comments (1149) | Send Message
    nice move in Div 5x what it was, I trimmed some of my (BAC) last week 17.40~17.50 range. I expect it to push over $20 in near/mid term and might break 23 by end of year. There is a market pull back on horizion mid Apr thru end of July and will be buying back in last weeks of July on a lot of the stuff I been taking profits in and moving deeper into the banking sector for long term as interest rates creep up.


    26 Mar 2014, 05:55 PM Reply Like
  • jobehro
    , contributor
    Comments (795) | Send Message
    Hurry and buy back into it, make the run up from here!
    26 Mar 2014, 07:10 PM Reply Like
  • genomegk
    , contributor
    Comments (1063) | Send Message
    It's a start, but at this rate it will take 25 years to reduce the float to pre-crash levels.
    26 Mar 2014, 06:24 PM Reply Like
  • A Prudent Investor
    , contributor
    Comments (1192) | Send Message
    BAC's dividend will double each year over the next four years. Once the preferred shares and trust securities are redeemed, larger stock buybacks will occur. I believe that BAC needs to redeem these preferred securities before stock buybacks. Shareholders benefit more by redeeming preferred securities than stock buybacks.
    26 Mar 2014, 08:15 PM Reply Like
  • Ralph P
    , contributor
    Comments (14) | Send Message
    I don't mind the stock staying in this range for a little while, it gives them the opportunity to buy back stock on the cheap. I own it at 10 and don't plan to sell for the next 10 to 15 yrs. stock price and dividend should be much higher in the next 2 years.
    26 Mar 2014, 08:18 PM Reply Like
  • submarine
    , contributor
    Comments (557) | Send Message
    I'm impressed. BAC wanted to do more, had to revise down. Bodes well for the future. Like the settlement to -- put it in the rearview!
    26 Mar 2014, 08:27 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11312) | Send Message
    I love being a BAC shareholder!


    5x dividend boost!!
    26 Mar 2014, 08:58 PM Reply Like
  • TD Amateur
    , contributor
    Comments (8) | Send Message
    BAC Headed in the right direction....... Glad I am long since $5 per share....... Great company, great CEO!!!!
    26 Mar 2014, 11:16 PM Reply Like
  • webbersworld
    , contributor
    Comments (218) | Send Message
    Bought in under $5 and am very pleased with where we are today. What are other longs planning on doing with this one? I'm 30 and still trying to decide whether I should hold on to this for the next 10-15+ years and drip the growing dividend or just sell out now and take the profits on to some new investments.
    26 Mar 2014, 11:59 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11312) | Send Message
    15 years from now the quarterly dividend could be $1 per share.


    Not bad for a sub $4 investment.
    27 Mar 2014, 05:05 AM Reply Like
  • jackooo
    , contributor
    Comments (1738) | Send Message
    Write a call option at $20. Money in the hand is worth more than a buy back.
    27 Mar 2014, 12:17 PM Reply Like
  • fafatooey
    , contributor
    Comments (435) | Send Message
    BAC is WAC.
    27 Mar 2014, 12:34 AM Reply Like
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