■ Increase · July 25, 2026
Bank of America Boosts Dividend by 14%, $17B Remaining in Buyback Program
Bank of America raised its quarterly dividend 14% to $0.32 per share, while its $40B buyback program still has $17B in authorization.
Dividend Increase Details
Bank of America (BAC) announced a 14% increase in its quarterly dividend on Friday, raising the payout to $0.32 per share. The new dividend is payable on September 25 to shareholders of record as of September 4. Based on the company's recent closing price, the dividend yields approximately 2.1%.
CEO Brian Moynihan stated that the increase reflects the company's earnings strength, franchise power, and confidence in long-term growth. The raise aligns with similar moves by other major banks following the Federal Reserve's stress tests, which Bank of America passed with strong results. The company's second-quarter earnings showed year-over-year growth in revenue, profitability, deposits, and loans/leases.
Share Buyback Program
Alongside the dividend hike, Bank of America highlighted its substantial share repurchase program. The board authorized $40 billion in buybacks last August, and the company has been actively using it. In the first half of the year alone, it spent $13.2 billion on buybacks, compared to $4 billion in total dividend payments. Combined with 2025 purchases, approximately $17 billion remains under authorization.
Share repurchases can support stock prices and boost earnings per share by reducing the number of shares outstanding. Since reporting second-quarter results, Bank of America's stock has outperformed the S&P 500 index.
Dividend History
Bank of America has a consistent dividend history, with regular increases over the years. The latest raise continues a trend of returning capital to shareholders through both dividends and buybacks.
What it means for income investors
The 14% dividend increase provides a meaningful income boost for shareholders, while the large buyback program signals strong capital management. With solid fundamentals and a healthy economy, Bank of America offers a growing income stream supported by robust earnings.
Reporting based on: Yahoo Finance. Figures verified against market data where available.