Meager Income

Pay Off Debt, Retire Comfortably on Meager Income, Win the Lottery, Not Necessarily in that Order

Bank of America Requests to Increase Their Dividend, Again!

Posted on | July 15, 2014 | No Comments

I’ve been a client of Bank of America for over 15 years. I’ve been fairly pleased with their services and they’ve done a great job of integrating their many acquisitions under the leadership of Kenneth Lewis. I purchased the stock at the wrong time at around 2007. I believe the yield at the time that I purchased the additional shares was about 5%. Unfortunately, the yield didn’t last very long. Not too long after my purchase, the stock price cratered along with the dividend and their went my investment.

In March of 2009, I started to buy back in. The stock seemed very cheap at the time and the Bank of America board promoted Brian Moynihan to CEO. My only regret is that I didn’t buy more shares at what turned out to be an amazing bargain.

Bank of America is my largest holding. You can view my portfolio by clicking here. Earlier this year, Bank of America had requested that the Federal Reserve approve their plan increase their dividend and buy back their stock. Due to an accounting irregularity they were asked to resubmit the request. Bank of America has resubmitted the request to increase their quarterly dividend from a penny a share to a nickel a share. The Federal Reserve has until August 10th to respond. I hope it gets approved. It would greatly boost my meager income and I would use the additional dividends to buy additional equities.

Bank of America will be reporting their earnings tomorrow morning. I’m expecting them to increase their revenue and earnings as they continue to put the problems that have plagued them since the beginning of the financial crisis in 2007 behind them. According to Schwab, Bank of America is expected to report Earnings of $0.90 per share for 2014. Even if they paid a 20 cent dividend per share annually they would have plenty of earnings to support the increase.


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