On Thursday, Bank of America (NYSE:BAC) hit its 52-week high at $10.58, more than 115 percent above its 52-week low of $4.92 hit on December 19, 2011. And in trading early today, it continues to climb.
The Weiss Financial Strength Rating for BofA also improved to C- (Fair) from D+ (Weak) during the year. The upgrade came on the heels of the institution's mid-year (thru June 30) results. And we anticipate that it will again pass its regulatory stress test required by the Dodd-Frank Act in the spring.
Weiss expects the company to buy back shares or increase its dividend in the near future. Either strategy would be a way for BofA to improve shareholder value.
Its current dividend yield is 0.38 percent, but we anticipate a return to historical levels of approximately six percent which would increase the quarterly dividend payout from $0.01 per share to about $0.15 per share.
This paints a pretty good picture for those looking to get in on a bank stock with the likelihood of appreciation over the next year.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.