Bank of America Increases Common Stock Dividend 8% to $0.28 Per Share, Authorizes $40 Billion Stock Repurchase Program

Rhea-AI Summary

Bank of America (NYSE:BAC) has announced two major shareholder-friendly initiatives. The company's Board of Directors declared a quarterly cash dividend increase of 8% to $0.28 per share, payable on September 26, 2025, to shareholders of record as of September 5, 2025.

Additionally, BAC authorized a substantial new $40 billion stock repurchase program, effective August 1, 2025, replacing the current program which has $9.1 billion remaining. The bank maintains its position as a leading financial institution, serving approximately 69 million consumer and small business clients through 3,700 retail centers and 15,000 ATMs, with 59 million verified digital users.

Positive

• Quarterly dividend increased by 8% to $0.28 per share
• Substantial $40 billion new stock repurchase program authorized
• Strong capital position allowing significant shareholder returns
• Large existing market presence with 69 million consumer and small business clients

Negative

• Stock repurchases subject to regulatory capital requirements and market conditions
• Capital distributions limited by regulatory constraints and economic conditions

News Market Reaction – BAC

+0.52%

1 alert

+0.52% News Effect

On the day this news was published, BAC gained 0.52%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

CHARLOTTE, N.C., July 23, 2025 /PRNewswire/ -- Bank of America Corporation today announced the Board of Directors declared a regular quarterly cash dividend on Bank of America common stock of $0.28 per share, up $0.02 from the prior quarter. The dividend is payable on September 26, 2025 to shareholders of record as of September 5, 2025.

The Board also authorized a new $40 billion common stock repurchase program, effective August 1, 2025, to replace the company's current program, which will expire on that date. As of June 30, 2025, the current program had approximately $9.1 billion in common stock repurchases remaining. Today's authorization will continue providing additional capital return flexibility, reflecting the company's commitment to return to shareholders excess capital that is not needed to support economic growth, deliver for customers and communities, invest in the future and sustain strength and stability through the economic cycle.

Bank of America's ability to make capital distributions depends, in part, on its ability to maintain regulatory capital levels above minimum capital requirements.

The timing and amount of common stock repurchases made pursuant to the Bank of America common stock repurchase program are subject to various factors, including the company's capital position, liquidity, financial performance and alternative uses of capital, stock trading price, regulatory requirements and general market conditions and may be suspended at any time. Such repurchases may be effected through open market purchases or privately negotiated transactions, including repurchase plans that satisfy the conditions of Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.

The Board also declared a regular quarterly cash dividend of $1.75 per share on the 7% Cumulative Redeemable Preferred Stock, Series B. The dividend is payable on October 24, 2025 to shareholders of record as of October 10, 2025.

Forward-Looking Statements

Certain statements contained in this news release may constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the current expectations, plans or forecasts of Bank of America based on available information. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These statements often use words like "expects," "anticipates," "believes," "estimates," "targets," "intends," "plans," "predict," "goal" and other similar expressions or future or conditional verbs such as "will," "may," "might," "should," "would" and "could." Forward-looking statements speak only as of the date they are made, and Bank of America undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

Forward-looking statements represent Bank of America's current expectations, plans or forecasts of its future results, revenues, expenses, dividends, efficiency ratio, capital measures, and future business and economic conditions more generally, and other future matters. These statements are not guarantees of its future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond Bank of America's control. Actual outcomes and results may differ materially from those expressed in, or implied by, any forward-looking statements due to a variety of factors. You should not place undue reliance on any forward-looking statement and should consider all of the precautionary statements, uncertainties and risks discussed in Bank of America's filings with the Securities and Exchange Commission (SEC), including under Item 1A. "Risk Factors" of Bank of America's Annual Report on Form 10-K for the year ended December 31, 2024, and in any of Bank of America's other subsequent SEC filings.

Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,700 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

Investors May Contact:
Lee McEntire, Bank of America
Phone: 1.980.388.6780
lee.mcentire@bofa.com 

Jonathan G. Blum, Bank of America (Fixed Income)
Phone: 1.212.449.3112
jonathan.blum@bofa.com 

Reporters May Contact:
Jocelyn Seidenfeld, Bank of America
Phone: 1.646.743.3356
jocelyn.seidenfeld@bofa.com 

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SOURCE Bank of America Corporation

FAQ

What is Bank of America's new dividend per share for 2025?

Bank of America increased its quarterly dividend by 8% to $0.28 per share, payable on September 26, 2025, to shareholders of record as of September 5, 2025.

How much is BAC's new stock buyback program worth?

Bank of America authorized a new $40 billion stock repurchase program, effective August 1, 2025, replacing the current program which has $9.1 billion remaining.

When will Bank of America's new dividend be paid?

The new quarterly dividend of $0.28 per share will be paid on September 26, 2025 to shareholders of record as of September 5, 2025.

What is the dividend increase percentage for BAC stock?

Bank of America increased its quarterly dividend by 8%, raising it by $0.02 from the prior quarter to $0.28 per share.

How many retail financial centers does Bank of America operate?

Bank of America operates approximately 3,700 retail financial centers and 15,000 ATMs, serving about 69 million consumer and small business clients in the United States.