CHARLOTTE, N.C., July 26 /PRNewswire/ -- The Bank of America Board of Directors today increased the quarterly cash dividend paid on common stock by 12 percent from $0.50 to $0.56 per share. The dividend is payable Sept. 22, 2006 to common shareholders of record on Sept. 1, 2006.
"Our shareholders will continue to reap the financial benefits from Bank of America's strong earnings growth," said Kenneth D. Lewis, Bank of America chairman and chief executive officer. "Today's announcement marks the 29th consecutive year of dividend increases. We are very proud to offer our shareholders one of the most reliable and rewarding dividend payout records in American business."
Bank of America last week announced that second quarter net income rose 18 percent to $5.5 billion, making it the most profitable financial services company in the world. The company has been recognized as a Standard & Poors Dividend Aristocrat, which includes the 57 companies in the S&P 500 which have increased their dividend for at least 25 consecutive years.
At the new rate, Bank of America's annual dividend yield would be 4.40 percent at Tuesday's NYSE closing price of $50.81, versus the dividend yield of the S&P 500 of 1.92 percent.
Since 1998, the company has returned a total of $91.5 billion to shareholders through dividends and share repurchases.
The board today also declared a $1.75 regular cash dividend on the 7 percent Cumulative Redeemable Preferred Stock, Series B. The dividend is payable Oct. 25, 2006 to shareholders of record on Oct. 11, 2006.
Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 54 million consumer and small business relationships with more than 5,700 retail banking offices, nearly 17,000 ATMs and award-winning online banking with more than 19.8 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 175 countries and has relationships with 98 percent of the U.S. Fortune 500 companies and 79 percent of the Global Fortune 500. Bank of America Corporation stock (NYSE:BAC) is listed on the New York Stock Exchange.
Source: Bank of America