Bank of America Raises Dividend After Returning $17.2 Billion to Investors

July 25, 2026
By Mintesinot Nigussie

Bank of America is set to increase shareholder returns after distributing 17.2 billion US dollars through dividends and share buybacks in the first half of 2026, as the lender moves to raise its quarterly dividend while continuing a large-scale repurchase programme. The bank’s board approved a 32-cent-per-share quarterly dividend for common shareholders, up four cents from the previous quarter. The payment, representing a 14 percent increase, is scheduled for September 25, 2026, for shareholders recorded as of September 4.

The latest dividend increase comes as the company continues executing a 40 billion US dollars share repurchase programme approved in August 2025. Bank of America repurchased 13.2 billion US dollars of common stock in the first six months of 2026 and paid 4 billion US dollars in dividends during the same period. Brian Moynihan, chair and chief executive of Bank of America, said the higher dividend reflected the company’s earnings strength and its ability to continue returning excess capital while investing in clients and communities.

“The increase in our dividend reflects the strength of our earnings, the power of our franchise and our confidence in Bank of America’s ability to drive long-term growth and create value for shareholders,” Moynihan said. The bank had about 17 billion US dollars remaining under its existing share repurchase authorisation as of June 30, 2026. Future buybacks will depend on factors including capital levels, liquidity, financial performance, regulatory requirements, market conditions and alternative uses of capital, according to the company.

Bank of America said capital distributions remain subject to maintaining regulatory capital above minimum requirements. The company may conduct repurchases through open-market transactions or privately negotiated deals, including arrangements permitted under Rule 10b5-1 of the Securities Exchange Act of 1934. The board also approved a quarterly dividend of 1.75 US dollars per share on its seven percent Cumulative Redeemable Preferred Stock, Series B. The payment is scheduled for October 23, 2026, for shareholders recorded as of October 9, 2026.

Source: FSX Business News