The FINANCIAL — Bank of America intends to increase its quarterly common stock dividend to $0.05 per share, beginning in the second quarter of 2014. Also, the Board of Directors authorized a new $4.0 billion common stock repurchase program, according to Bank of America Corporation.
This authorization, which covers both common stock and warrants, replaces the prior year’s common stock repurchase program that expires on March 31, 2014.
The Federal Reserve Board has informed the company that it completed its 2014 Comprehensive Capital Analysis and Review and that it did not object to the company’s capital plan, including the proposed dividend increase and repurchase program, covering the period from the second quarter of 2014 through the first quarter of 2015.
"Over the last few years we have focused on positioning the company to return capital to our shareholders,” said Brian Moynihan, Chief Executive Officer. “We know that increasing the common dividend is important to our shareholders and we are pleased that we can continue to return excess capital through both repurchases and dividends,” he added.
Dividends will continue to be subject to the Board’s approval at the customary times those dividends are declared. The company has historically paid its second quarter common stock dividend in late June. The timing and exact amount of common stock or warrant repurchases will be consistent with the company’s capital plan and will be subject to various factors, including the company’s capital position, liquidity, financial performance and alternative uses of capital, stock trading price, and general market conditions, and may be suspended at any time. The common stock or warrant repurchases may be effected through open market purchases or privately negotiated transactions, including Rule 10b5-1 plans, over the four quarters beginning with the second quarter of 2014, according to Bank of America Corporation.
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