Bank of America Announces $40 Billion Common Stock Repurchase Program and Dividend Declaration

Strategic Insights -

Bank of America Corporation announced on July 23, 2025, that its Board of Directors authorized a new $40 billion common stock repurchase program, effective August 1, 2025. This program will replace the current program, which will expire on August 1, 2025, and had approximately $9.1 billion in common stock repurchases remaining as of June 30, 2025. The Board also declared a regular quarterly cash dividend on Bank of America common stock of $0.28 per share, up $0.02 from the prior quarter, and a dividend of $1.75 per share on the 7% Cumulative Redeemable Preferred Stock, Series B. These announcements demonstrate the company's commitment to return excess capital to shareholders and provide additional capital return flexibility.

Key Takeaways:

  • The Board of Directors authorized a new $40 billion common stock repurchase program, effective August 1, 2025, to replace the current program.
  • The new program will provide additional capital return flexibility, reflecting the company's commitment to return to shareholders excess capital that is not needed to support economic growth, deliver for customers and communities, invest in the future, and sustain strength and stability through the economic cycle.
  • As of June 30, 2025, the current program had approximately $9.1 billion in common stock repurchases remaining.
  • The Board also declared a regular quarterly cash dividend on Bank of America common stock of $0.28 per share, up $0.02 from the prior quarter.
  • The dividend is payable on September 26, 2025, to shareholders of record as of September 5, 2025.
  • The Board also declared a regular quarterly cash dividend of $1.75 per share on the 7% Cumulative Redeemable Preferred Stock, Series B.
  • The dividend is payable on October 24, 2025, to shareholders of record as of October 10, 2025.
  • The company's ability to make capital distributions depends on its ability to maintain regulatory capital levels above minimum capital requirements.
  • The timing and amount of common stock repurchases made pursuant to the Bank of America common stock repurchase program are subject to various factors, including the company's capital position, liquidity, financial performance, and alternative uses of capital, stock trading price, regulatory requirements, and general market conditions.

Statistics:

  • $40 billion: The new common stock repurchase program authorized by the Board of Directors, effective August 1, 2025.
  • $0.28: The regular quarterly cash dividend on Bank of America common stock, up $0.02 from the prior quarter.
  • $1.75: The regular quarterly cash dividend on the 7% Cumulative Redeemable Preferred Stock, Series B.
  • 69 million: The approximate number of consumer and small business clients served by Bank of America.
  • 3,700: The number of retail financial centers operated by Bank of America.
  • 15,000: The number of ATMs operated by Bank of America.
  • 59 million: The number of verified digital users on Bank of America's digital banking platform.
  • 4 million: The approximate number of small business households served by Bank of America.

Sources:

  • Bank of America press release dated July 23, 2025.
  • Bank of America Corporation Annual Report on Form 10-K for the year ended December 31, 2024.
  • Securities Exchange Act of 1934.