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SoL #21: Bank Of America Dividend

The Fed recently announced the results of its stress tests, evaluations of a bank's ability to withstand an economic meltdown. 29 of the 30 financial institutions surveyed passed. Next week, the Fed will take the stress tests into account and study the banks' proposals for returning capital to shareholders through buybacks and dividends.

One of those that passed, Bank of America (NYSE:BAC), is a holding of mine. I have heard that they are expected to quadruple their dividend, which I really hope they do. BoA's pathetic yield drags down my overall portfolio yield; I hold the stock because I believe it has long-term capital appreciation upside, and more income would be a great complement to that.

Disclosure: I am long BAC.