Affordable Dividend Stocks to Watch: Bank of America Corporation's (BAC) Income Potential

Bank of America Corporation (NYSE:BAC) is included among the 11 Best Affordable Dividend Stocks to Buy Now.

Bank of America Corporation (NYSE:BAC) is an American multinational investment bank and financial services holding company, headquartered in North Carolina. It has grown rapidly, lending money at a rate that could outpace many of its competitors in the industry. Meanwhile, it has also bolstered efficiency by enhancing its digital platforms.

While soaring interest rates have proven challenging, Bank of America Corporation (NYSE:BAC)’s enduring profitability has enabled it to weather these crosswinds. As rates stabilize and consumer confidence rebounds, the bank stands to profit. Its wide-ranging businesses, including retail banking and investment banking, also make it more stable in times of market volatility.

Bank of America Corporation (NYSE:BAC) is also dedicated to transforming the future of banking, and while that makes it an intriguing choice for dividend investors, its strong financial position and access to low-cost capital further sweeten the deal. The bank has been steadily raising its dividends for 11 years now, and it currently pays a quarterly dividend of $0.28 per share. The stock has a dividend yield of 2.22%, as of October 2.

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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Disclosure: None.