BAC Stands Out as a Hidden Gem Among Dividend Stocks

Bank of America Corporation (NYSE:BAC) is one of the best next generation dividend aristocrat stocks.

While the company is mostly recognized for its core banking, investment, and financial services, its dividend track record is equally noteworthy, showing consistent growth over time.

In the last decade, the bank raised its dividend from $0.05 to $0.26 per share, which is a significant increase, especially for a company not typically seen as a top dividend stock. During the same period, its share price climbed more than 152%.

Looking ahead, its dividend has room to grow, supported by a strong and stable business foundation. In 2024, Bank of America Corporation (NYSE:BAC) added 1.1 million new consumer checking accounts, issued 4 million credit cards, and saw a 22% increase in consumer investment assets, reaching $518 billion. The Global Wealth division also showed strength, gaining 24,000 new clients in its Merrill Edge platform and opening 115,000 new bank accounts. By year-end, client balances hit $4.3 trillion— up 12%— while assets under management surged 52% to $79 billion.

For ten straight years, Bank of America Corporation (NYSE:BAC) has raised its dividend, reflecting its commitment to shareholder value and financial strength. This also shows that the company is able to fund operations and still return capital to investors.

Bank of America Corporation (NYSE:BAC) currently offers a quarterly dividend of $0.26 per share and has a dividend yield of 2.36%, as of June 14.

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: Dividend Stock Portfolio For Retirement and 10 Unstoppable Dividend Stocks to Buy Now

Disclosure. None.