Bank of America dividend
Bank of America pays a quarterly dividend of $0.32 per share. In 2025, dividends and buybacks exceeded earnings, so the dividend was not fully covered by earnings that year.
How much does Bank of America pay in dividends?
The board authorized $40 billion of additional repurchases in 2025, while the quarterly dividend rose to $0.32 in 2026. An authorization is permission, not a promise to spend. In the third quarter of 2026, Bank of America reported 10.9 percent CET1 capital against a 10 percent minimum, leaving limited room above the regulatory floor.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 3.81 | 3.19 | 3.05 | 3.19 | 3.57 |
| − Dividends, per share | 1.05 | 0.99 | 0.91 | 0.85 | 0.77 |
| − Share buybacks, per share | 2.79 | 1.65 | 0.57 | 0.62 | 2.94 |
| = Kept, per share | 0.56 | 1.57 | 1.71 | ||
| = Paid out more, per share | 0.06 | 0.13 |
What this means. The 2025 figures do not add up exactly because earnings per share includes assumed preferred shares, while the payout calculation uses only profit belonging to common shareholders.
Does Bank of America’s dividend have earnings coverage?
The healthier decision came after earnings improved: return money only after rebuilding the cushion. In 2025, earnings for common shareholders were $29,055 million, against $8,083 million of dividends and $21,433 million of buybacks. The share count fell from 8,558.4 million in 2021 to 7,680.9 million in 2025, so profits were divided among fewer shares. But distributions exceeded 2025 earnings, which cannot continue indefinitely without reducing capital.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| = Earnings for common shareholders | 29,055 | 25,344 | 24,656 | 26,015 | 30,557 |
| − Dividends declared on common shares | 8,083 | 7,822 | 7,374 | 6,963 | 6,575 |
| − Share buybacks | 21,433 | 13,104 | 4,576 | 5,073 | 25,126 |
| = Kept to grow and build capital | 4,418 | 12,706 | 13,979 | ||
| = Paid out more than it earned | 461 | 1,144 |
What this means. The company's dividend payout ratio is lower because it counts only dividends, while our paid-out percentage also counts share buybacks.
What could change Bank of America’s dividend?
Dividends rise gradually in the base case from $1.36 per share to $1.44 and then $1.52. The first figure is close to the 30% payout applied to forward earnings. The bear case holds at $1.28 before falling to $1.20, while the bull case rises from $1.40 to $1.56 and then $1.72. The bear path reflects the 10.9% CET1 ratio and higher capital demands; the bull path assumes stronger earnings absorb them.
The January 1, 2027 surcharge increase would push the forecast toward the bear case if it limits buybacks or delays dividend growth. Conversely, capital generation that preserves distributions would support the base case.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Book value | 280,753 (280,753 / 279,753) | 289,253 (287,253 / 287,753) | 298,253 (297,253 / 296,753) |
| Dividends per share | 1.36 (1.28 / 1.40) | 1.44 (1.20 / 1.56) | 1.52 (1.20 / 1.72) |
| Price to book value | 1.30 (1.10 / 1.45) | 1.32 (1.00 / 1.55) | 1.35 (0.95 / 1.65) |
What is Bank of America’s dividend yield against its price?
Bank of America’s stock price is a bet on what its capital can earn in the future. At $51.39 on October 15, 2026, the market is asking whether a recent setback is temporary and whether the bank can keep producing returns strong enough to justify paying above tangible book.