Dividend Growth in the Banking Sector: Bank of America (BAC)'s Path to Consistent Dividends

Bank of America Corporation (NYSE:BAC) is included among the 13 Best Consistent Dividend Stocks to Buy Now.

Bank of America Corporation (NYSE:BAC) stands out as a leading financial services company, largely due to the diversity of its operations. It serves consumers, small businesses, corporations, and investors through banking, capital markets, and wealth management. This broad reach helps balance performance, as strength in one area can offset weakness in another.

In the second quarter, Bank of America Corporation (NYSE:BAC) posted $7.1 billion in net income, reflecting consistent profitability. This strong position enables it to return significant capital to shareholders. In Q2 alone, it repurchased $5.3 billion of its own stock and distributed $2 billion in dividends. With a dividend yield of 2.21%, well above the broader market average of 1.25%, investors benefit from a steady income stream.

Looking ahead, capital returns are likely to continue, as Bank of America Corporation (NYSE:BAC) has authorized up to $40 billion in share buybacks. Over the past ten years, its dividend has surged by 460%. The company has been growing its payouts for 11 consecutive years and currently offers a quarterly dividend of $0.28 per share.

While we acknowledge the potential of BAC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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