Bank of America ups dividend to 5 cents a share, forgoes stock buyback

Bank Of America Building

Bank of America has raised its quarterly dividend to 5 cents a share and dropped plans to buy back stock after the Federal Reserve approved its resubmitted capital plan for 2014.

Bloomberg News has reported that the dividend will rise from 1 cent, the Charlotte, North Carolina-based company said Wednesday in a statement.

Plans for the increase were postponed in April after Bank of America said it made an error in its original request to the Fed. The central bank said today it didn’t object to the company’s revised plan.

CEO Brian Moynihan, 54, had to suspend the dividend increase and $4 billion of planned share repurchases after the company said it incorrectly adjusted for losses on structured notes issued by Merrill Lynch & Co. The boost to the dividend, which was cut to a token amount during the financial crisis, is the first in seven years.

To access the complete Bloomberg News article hit the link below:

BofA Raises Dividend, Drops Buyback as Fed Approves Plan

BofA Said Nearing Up to $17 Billion Mortgage Settlement

 

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