Strong capital strength and 11 consecutive dividend increases Bank of America (BAC.US) received “strong buying” endorsement from institutions

The Zhitong Finance App learned that Bank of America (BAC.US) announced on July 23 that it would raise its quarterly dividend by 7.7% to $0.28 per share. Through this increase, its dividend has grown for 11 consecutive years, making it one of the “Strong Buy” rated dividend stocks worth focusing on. As of July 29, the stock had a dividend yield of 2.34%.

Bank of America previously reported strong results for the second quarter of 2025. The company's Q2 revenue reached US$26.46 billion, up 4.2% from the same period last year. The book value per share of common stock increased 8% to $37.13; the book value per share of tangible common stock increased 9% to $27.71.

Bank of America traders contributed greatly in the second quarter. The trading business recorded the strongest second-quarter business revenue in history, mainly due to sharp fluctuations in the stock market and a huge rebound in US stocks. At the same time, net interest income also exceeded the general expectations of Wall Street analysts.

The bank accrued credit loss reserves of US$1.6 billion in Q2, a slight increase from US$1.5 billion in the second quarter of 2024 and the first quarter of 2025. Net write-off was stable at $1.5 billion, the same as the two quarters mentioned above. Under the standardized method, the Tier 1 capital adequacy ratio (CET1) for common shares is 11.5%, which is significantly higher than the regulatory minimum.

Earlier, Warren Buffett, who has the title of “stock god,” drastically reduced Bank of America's stock holdings, and the Kuwait Sovereign Wealth Fund, another key institutional investor that strongly supported Bank of America during the worst period of the 2008 financial crisis, also drastically reduced its holdings. However, driven by strong performance, combined with Trump-led deregulation and strong dividends, Bank of America's stock price is expected to reach a new high.