Bank of America boosts dividend 14% to $0.32, continues $40B buyback

Bank of America raised its quarterly dividend 14% to $0.32 per share, the lender said Thursday.

"The increase in our dividend reflects the strength of our earnings, the power of our franchise and our confidence in Bank of America's ability to drive long-term growth and create value for shareholders," Chair and Chief Executive Officer Brian Moynihan said.

The dividend is payable Sept. 25 to shareholders of record as of Sept. 4. The $0.04 increase from the prior quarter brings the annualized payout to $1.28 per share. Bank of America also continues to repurchase stock under a $40 billion authorization from the board that has been in effect since Aug. 1, 2025. In the first half of 2026, the company repurchased $13.2 billion of common stock and paid $4 billion in dividends, leaving approximately $17 billion remaining under the program as of June 30.

The capital return plan signals confidence in the bank's earnings power despite an uncertain interest rate environment. Bank of America's ability to make distributions depends on maintaining regulatory capital above minimum requirements, and the board may suspend or adjust the buyback at any time based on market conditions, the company said.

The board also declared a quarterly cash dividend of $1.75 per share on the 7% Cumulative Redeemable Preferred Stock, Series B, payable Oct. 23 to shareholders of record as of Oct. 9.

For shareholders, the 14% dividend increase and ongoing buyback represent a combined $17.2 billion in capital returned in the first half of 2026. Investors will watch the bank's third-quarter earnings in October for updates on net interest income and loan growth, which will determine whether the pace of buybacks accelerates or slows.

This article is for informational purposes only and does not constitute investment advice.