Bank of America Increases Common Stock Dividend 8% to $0.28 Per Share and Authorizes $40 Billion Stock Repurchase Program

Strategic Insights -

Bank of America, one of the world's leading financial institutions, has taken a significant step to reward its shareholders by increasing its common stock dividend to $0.28 per share, an 8% increase from the previous quarter. The company has also authorized a new $40 billion stock repurchase program, effective August 1, 2025, to replace its current program, which will expire on the same date. This move reflects the company's commitment to return excess capital to shareholders while maintaining its ability to support economic growth, deliver for customers and communities, and invest in the future.

Key Takeaways:

  • Bank of America has increased its common stock dividend by 8% to $0.28 per share, effective for the upcoming quarter.
  • The company has authorized a new $40 billion stock repurchase program, effective August 1, 2025, to replace its current program, which will expire on the same date.
  • The remaining balance in the current program is approximately $9.1 billion as of June 30, 2025.
  • Bank of America's ability to make capital distributions depends on its regulatory capital levels above minimum requirements.
  • The timing and amount of common stock repurchases are subject to various factors, including the company's capital position, liquidity, financial performance, and alternative uses of capital.
  • Bank of America provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients through approximately 3,700 retail financial centers and approximately 15,000 ATMs.
  • The company's 7% Cumulative Redeemable Preferred Stock, Series B, will receive a regular quarterly cash dividend of $1.75 per share, payable on October 24, 2025, to shareholders of record as of October 10, 2025.
  • Forward-looking statements regarding the company's business and economic conditions may differ from actual outcomes and results.

Statistics:

  • $0.28: The new common stock dividend per share, an 8% increase from the previous quarter.
  • 8%: The increase in common stock dividend.
  • $40 billion: The authorized stock repurchase program.
  • August 1, 2025: The effective date of the new stock repurchase program.
  • $9.1 billion: The remaining balance in the current program as of June 30, 2025.
  • 69 million: The number of consumer and small business clients served in the United States.
  • 3,700: The number of retail financial centers in the United States.
  • 15,000: The number of ATMs in the United States.
  • 59 million: The number of verified digital users.
  • $1.75: The regular quarterly cash dividend per share on the 7% Cumulative Redeemable Preferred Stock, Series B.

Sources:

  • Bank of America news release, July 23, 2025, available at https://newsroom.bankofamerica.com/content/newsroom/press-releases/2025/07/bank-of-america-increases-common-stock-dividend-8--to--0-28-per-.html