A person uses an ATM at a Bank of America branch in Boston, Massachusetts, on October 11, 2017. (Photo: REUTERS/Brian Snyder, File)
Bank of America (BoA) has exciting news for its investors. The bank just announced an increase in its quarterly dividend and introduced a massive new share repurchase program aimed at rewarding shareholders.
BoA’s Board of Directors approved a higher cash dividend on common stock, raising it by $0.02 to $0.28 per share. This updated payout will reach shareholders on September 26, 2025, as long as they hold shares by September 5, 2025.
But the big headline? The Board has also cleared a fresh $40 billion stock buyback initiative, kicking off on August 1, 2025. This move replaces the current repurchase program, which is set to expire on the same date. As of June 30, 2025, the older program had about $9.1 billion in unused buybacks remaining. This new authorization reflects the bank’s effort to return surplus capital to shareholders, while still maintaining financial strength and room for growth.
BoA emphasized that this decision reflects its long-term commitment to striking a balance—helping the economy, supporting customers, investing in new opportunities, and delivering value to shareholders.
What Influences Stock Repurchases?
The timing and total amount of share repurchases aren’t set in stone. BoA explained that several factors will shape how the buybacks proceed, such as:
- The bank’s overall capital position
- Available liquidity
- Financial performance
- Share trading prices
- Market conditions
- Regulatory requirements
In some cases, the buybacks could be paused or modified. The repurchases might happen in open markets or through private deals, including those that follow Rule 10b5-1, which allows for predetermined trading plans under the Securities Exchange Act of 1934.
Preferred Stock Dividend Also Declared
In addition to the common stock update, BoA announced a separate quarterly dividend of $1.75 per share for holders of its 7% Cumulative Redeemable Preferred Stock, Series B. This payout is scheduled for October 24, 2025, for shareholders on record as of October 10, 2025.
Caution on Forward-Looking Statements
BoA also issued a note of caution about the future. Some statements in the press release are based on current expectations and could change. These “forward-looking statements” are not promises but rather projections. They use terms like “expects,” “plans,” or “might,” and reflect what the company anticipates given today’s conditions.
Factors like economic changes, market fluctuations, or regulatory shifts could cause actual results to differ. BoA reminded readers not to over-rely on these projections and to review its risk disclosures filed with the Securities and Exchange Commission (SEC).
About Bank of America
BoA stands among the largest financial institutions globally. It serves 69 million U.S. consumers and small businesses with around 3,700 financial centers and over 15,000 ATMs. Nearly 59 million customers actively use its digital banking platforms.
Beyond retail banking, BoA is a major player in wealth management, corporate finance, and investment banking. It supports 4 million small businesses with user-friendly financial tools. Operating across more than 35 countries, BoA’s global presence remains strong, with its stock traded on the New York Stock Exchange under the symbol BAC.
