Bank of America (BAC) Maintains Dividend Amid Strong Earnings and Moderate Outlook

Bank of America Corporation (NYSE:BAC) is one of the best affordable long term stocks to buy according to hedge funds. On February 3, Bank of America Corporation’s (NYSE: BAC) Board declared a $0.28 per share for Q1 2026. This matches the amount paid in the previous quarters since July 2024, when management raised the quarterly dividend from $0.24.

Meanwhile, on January 15, TD Cowen lowered its price target on BofA stock to $64 from $66.00 and kept the Buy rating on the stock. TD Cowen made this change after BofA’s Q4 2025 earnings report, where the bank’s $0.98 EPS surpassed the expected $0.96. Quarterly revenue also topped forecast; it came in at $28.4 billion against the expected $27.55 billion.

TD Cowen’s lead analyst, Steven Alexopoulos, noted that BofA’s earnings beat came mainly on the back of lower provisions and a slight upside in net interest income. And despite the beat, Alexopoulos noted that the bank’s stock declined after the results came out. The analyst attributed the decline to management’s outlook for operating leverage landing; it was toward the low end of what investors were hoping to hear, said the analyst.

Specifically, the bank guided to near-term operating leverage of approximately 200 basis points for FY 2026. This sits at the lower end of its medium-term target range of 200 to 300 basis points. Alexopoulos emphasized that BofA’s revenue growth outlook remains largely intact though.

Bank of America Corporation (NYSE:BAC) is a financial services company. It provides consumer banking, wealth management, corporate lending, and investment banking through its global operations. The company serves individuals, businesses, and institutions with products ranging from deposits and credit cards to capital markets and advisory services.

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.

READ NEXT: 12 Best Consumer Goods Stocks Billionaires Are Quietly Buying and Goldman Sachs Penny Stocks: Top 12 Stock Picks.

Disclosure: None. This article is originally published at Insider Monkey.