Bank of America shareholders have until today’s closing bell to secure the bank’s next quarterly payout. The stock trades ex-dividend on September 4, 2026, so investors must own shares before that date to receive the $0.32 per share dividend scheduled for September 25.
What the new dividend pays
Bank of America raised its quarterly dividend 14 percent in July, from $0.28 to $0.32 per share. The board declared the increase on July 24, 2026, and also declared a $1.75 quarterly dividend on its 7 percent Cumulative Redeemable Preferred Stock, Series B, payable October 23.
The new annualized common stock rate is $1.28 per share. At the September 2 closing price of $62.60, that equals a yield of about 2.0 percent.
| Bank of America dividend at a glance | Detail |
|---|---|
| Quarterly dividend | $0.32 per share |
| Increase from prior quarter | 14 percent, up from $0.28 |
| Ex-dividend date | September 4, 2026 |
| Record date | September 4, 2026 |
| Payment date | September 25, 2026 |
| Annualized rate | $1.28 per share |
| Closing price September 2 | $62.60 |
| Indicated yield | Approximately 2.0 percent |
What the income looks like per $100,000 invested
At $62.60 per share, a $100,000 position holds roughly 1,597 shares. At the new rate, that stake generates about $2,048 in annual dividend income, up from about $1,789 at the old $1.12 annualized rate. The raise adds roughly $259 a year per $100,000 invested.
The stock closed at $61.99 on September 1 and $62.60 on September 2, a gain of just under one percent on the session. Volume on September 2 reached roughly 27 million shares.
Why the board raised the payout
Chief Executive Brian Moynihan tied the increase directly to earnings power. In the July announcement, he said the increase reflects the strength of the bank’s earnings, the power of its franchise, and its confidence in driving long-term growth and value for shareholders.
The bank also runs an active share repurchase program alongside the dividend. Repurchases executed under Rule 10b5-1 plans give the board a second channel for returning capital when the share price looks attractive.
What to watch into the October report
Bank earnings remain tied to interest rates and credit conditions. The 10-year Treasury yield recently reached 4.80 percent, the highest level since January 2025, a backdrop that has supported net interest income at large banks while pressuring loan demand and bond portfolios.
Income investors should track three items in the October earnings release: the net interest income trajectory, credit losses in the consumer and commercial books, and whether the board repeats its pattern of a mid-year increase.
Common mistakes dividend investors make
- Buying a stock only to capture a dividend, without weighing whether the position fits the portfolio. The shares can fall by more than the payout in a single session.
- Confusing the ex-dividend date with the payment date. Ownership before September 4 is required; the cash arrives September 25.
- Ignoring yield context. A 2.0 percent yield is modest, so the case for the stock rests on dividend growth and buybacks rather than current income alone.
Bottom line
Bank of America’s 14 percent increase extends one of the more reliable capital return programs in money-center banking. Investors must own shares before the September 4 ex-dividend date to collect. The next payment lands September 25.
Stay ahead with our weekly newsletter
Get stock picks, market analysis, and strategy updates delivered to your inbox every week.
Subscribe to AlphaBetaStock’s free newsletter for daily market insights.
