Bank of America Jams on Buyback and Dividend (BAC)

Bank of America Corporation (NYSE: BAC) just made key announcements regarding the dividend and the share buyback plans.  It has just announced that it declared a regular quarterly dividend on common stock of $0.64 per share.  So Ken Lewis meant what he said by announcing that he didn’t see the need to cut the dividend.

Perhaps even more important is thee size of its new buyback plan for common stock.  The financial giant has authorized a new buyback plan of up to 75 million shares of its common stock, which takes the plan up to $3.75 billion which is good for the next 12 to 18 months.  This new buyback plan replaces the expiring January 2007 repurchase authorization of 200 million shares.

Jon C. Ogg
July 23, 2008