danthetaxman

When a Yield Sounds Too Good to Be True...

IF the stock market is truly efficient, stock price equals risk adjusted, discounted after-tax projected cash flows. Having worked closely for years with the inside financial "powers that be" as an analyst for DuPont, and as a consultant for Hewlett-Packard, rarely did management fully disclose/make realistic provision for, contingencies. Doubtful that BAC is any different. As such, my prediction is that BAC cannot/will not maintain their current dividend levels. Else, BAC would not be trading at $30 per share and yielding over 8%.