Bank of America Raises Quarterly Dividend to $0.32

Bank of America Corporation (NYSE: BAC) raised its quarterly dividend to $0.32 per share from $0.28, an increase of 14.29%. The shares traded ex-dividend on Sept. 4, 2026.

The new rate equates to an annual dividend of $1.28 per share. Based on a share price of $62.68, Bank of America’s forward annual dividend yield is 2.03%.

Earnings and capital support the increase

Chair and Chief Executive Brian Moynihan said the higher payout reflected the “strength of our earnings” and the company’s confidence in its ability to generate long-term growth. He also described the decision as part of Bank of America’s commitment to returning excess capital while continuing to invest in its operations and maintain financial strength through economic cycles. The comments accompanied the board’s formal dividend declaration in a filing with the Securities and Exchange Commission. SEC filing

The increase followed the Federal Reserve’s annual stress-test process, after which several large banks announced higher shareholder distributions. Bank of America had also exceeded Wall Street’s second-quarter profit expectations as volatile markets supported trading activity and stronger corporate dealmaking lifted investment-banking results. Reuters

Bank dividends are closely tied to regulatory capital requirements. In its latest quarterly filing, Bank of America said it manages capital to support its businesses, remain aligned with its risk appetite and satisfy supervisory requirements. The company also detailed its participation in the Federal Reserve’s annual capital-planning and stress-testing process. Bank of America quarterly filing

The latest action extends Bank of America’s dividend-growth streak to 12 consecutive years. The company previously cut its payout in 2009, during the financial crisis.

What it means for income investors

The increase raises the cash income generated by each share relative to the previous quarterly rate. Investors who purchased the stock on or after the Sept. 4 ex-dividend date are not entitled to the associated distribution.

SmarterDividends assigns Bank of America a dividend-safety score of 85 out of 100, corresponding to an A grade. That assessment indicates a comparatively strong payout profile, though dividends remain subject to board approval, earnings performance and regulatory capital constraints.