Bank of America Greenlights $40 Billion Share Repurchase Initiative

Bank of America Corporation (NYSE:BAC), currently hovering near its 52-week high, has unveiled a significant move to return capital to shareholders. With a market capitalization of approximately $358 billion, the financial heavyweight revealed its decision to raise its quarterly cash dividend by 8%, bringing the new payout to $0.28 per share. This decision underscores the bank’s confidence in its earnings power and ongoing financial resilience.

A Legacy of Dividend Strength and Shareholder Commitment

The latest dividend, which is two cents higher than the previous quarter, will be distributed on September 26, 2025, to shareholders on record as of September 5, 2025. This marks the 11th consecutive year that Bank of America has raised its dividend, reinforcing a legacy of consistent shareholder returns. With a history of uninterrupted dividend payments stretching back 55 years, the bank continues to position itself as a reliable income-generating stock. Its current dividend yield stands at a solid 2.18%, offering long-term investors both growth and income potential.

A New $40 Billion Stock Buyback Signals Capital Strength

In tandem with the dividend hike, Bank of America has authorized a substantial new $40 billion stock repurchase program. This plan will come into effect on August 1, 2025, effectively replacing the current buyback program set to expire on the same date. As of June 30, 2025, approximately $9.1 billion remained under the existing repurchase authorization. The new program is a clear indication of the bank's strategic approach to capital allocation, providing the flexibility to adapt to evolving market dynamics while rewarding shareholders.

Strategic Flexibility Amid Regulatory Prudence

Bank of America emphasized that the new repurchase plan is designed to offer "additional capital return flexibility" while maintaining capital levels that exceed regulatory requirements. The actual volume and timing of share repurchases under this program will be governed by several factors, including the bank’s capital adequacy, liquidity position, and prevailing market conditions. This balanced approach reflects a disciplined capital management strategy rooted in long-term sustainability.

Preferred Stockholders to Receive Steady Returns

Alongside its common stock dividend and repurchase program, the bank’s Board of Directors also approved a regular quarterly cash dividend of $1.75 per share on its 7% Cumulative Redeemable Preferred Stock, Series B. This dividend will be payable on October 24, 2025, to holders on record as of October 10, 2025. The move reflects Bank of America’s continued commitment to delivering dependable returns across all classes of shareholders.

A Vast Domestic Presence and Global Reach

Bank of America’s strong financial performance is underpinned by its expansive client base and operational footprint. The institution serves nearly 69 million consumer and small business clients across the U.S. through an extensive network of approximately 3,700 financial centers and 15,000 ATMs. Beyond its domestic operations, the bank maintains a presence in more than 35 countries, reinforcing its status as a globally integrated financial services provider.