Bank of America plans to boost dividend by 17% after clearing stress test

Jun. 28, 2021 4:59 PM ETBACBy: Liz Kiesche, SA News Editor170 Comments
  • Bank of America (NYSE:BAC) plans to increase its quarterly common stock dividend by 17% to 21 cents per share starting in Q3 2021 in the wake of the Federal Reserve's bank stress tests.
  • The company will be subject to a preliminary 2.5% stress capital buffer from Oct. 1, 2021 to Sept. 30, 2022. When combined with the Basel common equity tier 1 minimum of 4.5% and the Global Systemically Important Bank Surcharge of 2.5%, the SCB will result in a minimum CET1 ratio under applicable regulatory standards of 9.5%, unchanged from its current level.
  • BAC shares rise 0.3% in after-hours trading.
  • In April, the bank announced its plan to repurchase up to $25B of common stock over time.
  • Previously (June 24), Stress tests: All 23 banks clear minimum risk levels set by the Fed

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