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Bank of America

NYSE:BAC
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BAC
NYSE
$294B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments worldwide. The last earnings update was 24 days ago. More info.


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BAC Share Price and Events
7 Day Returns
0.4%
NYSE:BAC
0.1%
US Banks
0.5%
US Market
1 Year Returns
20.4%
NYSE:BAC
10.6%
US Banks
16.1%
US Market
BAC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bank of America (BAC) 0.4% 5.3% 24.1% 20.4% 59.7% 91.9%
US Banks 0.1% 4.1% 15.7% 10.6% 27.5% 51.9%
US Market 0.5% 3.9% 6.6% 16.1% 37.7% 43.7%
1 Year Return vs Industry and Market
  • BAC outperformed the Banks industry which returned 10.6% over the past year.
  • BAC outperformed the Market in United States of America which returned 16.1% over the past year.
Price Volatility
BAC
Industry
5yr Volatility vs Market

BAC Value

 Is Bank of America undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Bank of America to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Bank of America.

NYSE:BAC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 15 analysts.
= Stable Book Value * Return on Equity
= $28.72 * 10.6%
$3.04
Book Value of Equity per Share Weighted future Book Value estimates from 15 analysts. $28.72
Discount Rate (Cost of Equity) See below 10.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:BAC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.61
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.615 (1 + (1- 21%) (186.26%))
1.266
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.27
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.266 * 5.96%)
10.27%

Discounted Cash Flow Calculation for NYSE:BAC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Bank of America is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:BAC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.6% – 10.27%) * $28.72)
$0.09
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.09 / (10.27% - 2.73%)
$1.16
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $28.72 + $1.16
$29.88
NYSE:BAC Discount to Share Price
Calculation Result
Value per share (USD) From above. $29.88
Current discount Discount to share price of $32.84
= -1 x ($32.84 - $29.88) / $29.88
-9.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Bank of America is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Bank of America's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bank of America's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:BAC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $2.74
NYSE:BAC Share Price ** NYSE (2019-11-21) in USD $32.84
United States of America Banks Industry PE Ratio Median Figure of 571 Publicly-Listed Banks Companies 12.63x
United States of America Market PE Ratio Median Figure of 2,917 Publicly-Listed Companies 18.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Bank of America.

NYSE:BAC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:BAC Share Price ÷ EPS (both in USD)

= 32.84 ÷ 2.74

11.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of America is good value based on earnings compared to the US Banks industry average.
  • Bank of America is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Bank of America's expected growth come at a high price?
Raw Data
NYSE:BAC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.99x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
-0.4%per year
United States of America Banks Industry PEG Ratio Median Figure of 261 Publicly-Listed Banks Companies 0.93x
United States of America Market PEG Ratio Median Figure of 2,043 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

NYSE:BAC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.99x ÷ -0.4%

-27.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of America earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Bank of America's assets?
Raw Data
NYSE:BAC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $26.96
NYSE:BAC Share Price * NYSE (2019-11-21) in USD $32.84
United States of America Banks Industry PB Ratio Median Figure of 576 Publicly-Listed Banks Companies 1.19x
United States of America Market PB Ratio Median Figure of 5,089 Publicly-Listed Companies 1.75x
NYSE:BAC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:BAC Share Price ÷ Book Value per Share (both in USD)

= 32.84 ÷ 26.96

1.22x

* Primary Listing of Bank of America.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bank of America is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess Bank of America's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Bank of America has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BAC Future Performance

 How is Bank of America expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bank of America expected to grow at an attractive rate?
  • Bank of America's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Bank of America's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Bank of America's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:BAC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:BAC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts -0.4%
NYSE:BAC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 0.6%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 0.3%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 2.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:BAC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:BAC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 92,341 25,370 7
2020-12-31 91,519 25,668 11
2019-12-31 91,774 25,583 10
2019-11-21
NYSE:BAC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 86,173 -11,248 26,289
2019-06-30 88,225 14,060 27,718
2019-03-31 88,449 14,267 27,075
2018-12-31 88,694 39,520 26,696
2018-09-30 86,130 46,342 21,736
2018-06-30 85,127 47,040 19,994
2018-03-31 84,779 63,207 18,273
2017-12-31 83,956 9,864 16,618
2017-09-30 83,737 8,608 18,790
2017-06-30 83,517 -11,170 18,283
2017-03-31 81,724 -5,525 17,960
2016-12-31 80,104 17,277 16,140

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Bank of America's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Bank of America's revenue is expected to grow by 0.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:BAC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Bank of America Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BAC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 3.19 3.81 2.78 11.00
2020-12-31 2.99 3.33 2.87 22.00
2019-12-31 2.70 2.78 2.63 23.00
2019-11-21
NYSE:BAC Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 2.74
2019-06-30 2.83
2019-03-31 2.72
2018-12-31 2.64
2018-09-30 2.12
2018-06-30 1.94
2018-03-31 1.78
2017-12-31 1.63
2017-09-30 1.86
2017-06-30 1.80
2017-03-31 1.76
2016-12-31 1.57

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Bank of America is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Bank of America's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Bank of America has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BAC Past Performance

  How has Bank of America performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Bank of America's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Bank of America has delivered over 20% year on year earnings growth in the past 5 years.
  • Bank of America's 1-year earnings growth is less than its 5-year average (20.9% vs 24.8%)
  • Bank of America's earnings growth has not exceeded the US Banks industry average in the past year (20.9% vs 27.3%).
Earnings and Revenue History
Bank of America's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Bank of America Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BAC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 86,173.00 26,289.00 45,191.00
2019-06-30 88,225.00 27,718.00 45,043.00
2019-03-31 88,449.00 27,075.00 44,787.00
2018-12-31 88,694.00 26,696.00 44,945.00
2018-09-30 86,130.00 21,736.00 45,674.00
2018-06-30 85,127.00 19,994.00 45,501.00
2018-03-31 84,779.00 18,273.00 45,396.00
2017-12-31 83,956.00 16,618.00 45,104.00
2017-09-30 83,737.00 18,790.00 44,987.00
2017-06-30 83,517.00 18,283.00 44,849.00
2017-03-31 81,724.00 17,960.00 44,505.00
2016-12-31 80,104.00 16,140.00 45,287.00
2016-09-30 79,660.00 14,843.00 45,459.00
2016-06-30 79,061.00 14,569.00 45,902.00
2016-03-31 79,448.00 14,653.00 46,174.00
2015-12-31 79,804.00 14,427.00 46,896.00
2015-09-30 81,185.00 14,824.00 47,163.00
2015-06-30 81,572.00 10,176.00 47,493.00
2015-03-31 80,564.00 7,018.00 48,300.00
2014-12-31 83,619.00 4,476.00 48,876.00
2014-09-30 84,618.00 4,234.00 49,539.00
2014-06-30 85,279.00 6,921.00 50,127.00
2014-03-31 85,459.00 8,456.00 50,540.00
2013-12-31 83,946.00 9,188.00 50,821.00
2013-09-30 79,090.00 7,264.00 51,404.00
2013-06-30 76,510.00 5,014.00 51,625.00
2013-03-31 75,189.00 3,541.00 52,004.00
2012-12-31 73,565.00 2,758.00 52,555.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Bank of America has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bank of America used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Bank of America improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Bank of America's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Bank of America has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BAC Health

 How is Bank of America's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Bank of America's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Bank of America Company Filings, last reported 1 month ago.

NYSE:BAC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 268,387.00 537,578.00 592,245.00
2019-06-30 271,408.00 521,266.00 575,959.00
2019-03-31 267,010.00 495,993.00 585,190.00
2018-12-31 265,325.00 494,314.00 560,939.00
2018-09-30 262,158.00 495,370.00 575,696.00
2018-06-30 264,216.00 499,788.00 532,582.00
2018-03-31 266,224.00 502,805.00 579,080.00
2017-12-31 267,146.00 493,944.00 503,380.00
2017-09-30 272,459.00 505,174.00 528,333.00
2017-06-30 270,987.00 508,834.00 524,303.00
2017-03-31 268,153.00 504,175.00 520,789.00
2016-12-31 266,195.00 464,986.00 472,487.00
2016-09-30 270,083.00 473,704.00 503,457.00
2016-06-30 267,069.00 488,291.00 520,250.00
2016-03-31 262,776.00 493,753.00 529,308.00
2015-12-31 256,176.00 477,603.00 478,320.00
2015-09-30 255,905.00 516,906.00 508,156.00
2015-06-30 251,659.00 539,924.00 494,719.00
2015-03-31 250,188.00 527,120.00 513,562.00
2014-12-31 243,476.00 522,497.00 471,769.00
2014-09-30 238,681.00 545,553.00 496,823.00
2014-06-30 237,411.00 559,420.00 524,395.00
2014-03-31 231,888.00 546,213.00 518,457.00
2013-12-31 232,685.00 531,186.00 469,861.00
2013-09-30 232,282.00 566,942.00 495,004.00
2013-06-30 231,032.00 590,091.00 489,897.00
2013-03-31 237,293.00 617,763.00 502,255.00
2012-12-31 236,956.00 645,591.00 514,821.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Bank of America has an acceptable proportion of non-loan assets held.
  • Bank of America's liabilities are made up of primarily low risk sources of funding.
  • Loans at Bank of America are broadly funded by customer deposits.
  • Bank of America's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Bank of America has a sufficient allowance for bad loans.
  • Bank of America has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Bank of America's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Bank of America has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BAC Dividends

 What is Bank of America's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.19%
Current annual income from Bank of America dividends. Estimated to be 2.31% next year.
If you bought $2,000 of Bank of America shares you are expected to receive $44 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Bank of America's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Bank of America's dividend is below the markets top 25% of dividend payers in United States of America (3.65%).
Upcoming dividend payment

Purchase Bank of America before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:BAC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 467 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1954 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:BAC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.88 14.00
2020-12-31 0.78 21.00
2019-12-31 0.66 20.00
2019-11-21
NYSE:BAC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-10-22 0.720 2.224
2019-06-27 0.720 2.503
2019-04-24 0.600 2.098
2019-01-30 0.600 2.077
2018-10-24 0.600 2.254
2018-07-26 0.600 1.983
2018-04-26 0.480 1.619
2018-02-01 0.480 1.548
2017-10-25 0.480 1.656
2017-07-26 0.480 1.939
2017-07-18 0.300 1.248
2017-05-02 0.300 1.272
2017-04-18 0.300 1.285
2017-02-23 0.300 1.250
2017-01-13 0.300 1.287
2016-06-29 0.300 1.782
2016-01-21 0.200 1.473
2015-10-22 0.200 1.196
2015-07-23 0.200 1.219
2015-04-17 0.200 1.191
2015-02-10 0.200 1.257
2014-10-23 0.200 1.188
2014-08-06 0.200 1.228
2014-06-18 0.040 0.258
2014-05-01 0.200 1.324
2014-04-16 0.200 1.268
2014-02-11 0.040 0.238
2013-10-24 0.040 0.256
2013-07-24 0.040 0.278
2013-04-30 0.040 0.301
2013-01-23 0.040 0.335
2012-10-24 0.040 0.384
2012-07-11 0.040 0.482
2012-04-11 0.040 0.516
2012-01-11 0.040 0.492
2011-11-18 0.040 0.719
2011-08-22 0.040 0.607
2011-05-11 0.040 0.405
2011-01-26 0.040 0.295
2010-10-25 0.040 0.318
2010-07-28 0.040 0.304
2010-04-28 0.040 0.259
2010-01-27 0.040 0.238
2009-10-28 0.040 0.256
2009-07-21 0.040 0.245
2009-04-29 0.040 0.337
2009-01-16 0.040 0.673

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Bank of America's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).
X
Income/ dividend checks
We assess Bank of America's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Bank of America afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bank of America has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BAC Management

 What is the CEO of Bank of America's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brian Moynihan
COMPENSATION $22,754,510
AGE 60
TENURE AS CEO 9.8 years
CEO Bio

Mr. Brian T. Moynihan has been the Chief Executive Officer and Director of Bank of America Corporation since January 01, 2010 and has been its Chairman since October 01, 2014. Mr. Moynihan had been the President of Bank of America Corporation since January 01, 2010 until 2018. He serves as the General Partner of Bofa Merrill Lynch Preferred Capital Trust III, BofA Merrill Lynch Preferred Capital Trust IV, BofA Merrill Lynch Preferred Funding IV LP, BofA Merrill Lynch Preferred Funding III LP, BofA Merrill Preferred Capital Trust V and BofA Merrill Lynch Preferred Funding V LP. He served as the President of Global Banking & Wealth Management of Bank of America Corporation since January 2010. His direct support of diversity and inclusion initiatives across Bank of America is instrumental in creating an inclusive work environment. Mr. Moynihan served as the Chief Executive Officer of Merrill Lynch & Co., Inc. He served as the Director of Operation at Qualsec since September 2008. Mr. Moynihan served as the President at Global Wealth & Investment Management at Banc of America Investment Services, Inc. He served as the President at Fleet National Bank. Mr. Moynihan served as General Counsel at Bank of America Corporation from December 2008 to January 2010 and also as its Head of Consumer Banking from August 2009 to January 2010. He served as the President of Global Wealth and Investment Management at Bank of America Corporation from April 2004 to October 2007. Mr. Moynihan served as the President of Global Banking, Global Wealth & Investment Management at Bank of America Corporation since January 2009 and served as its President of Global Corporate and Investment Banking from October 2007 to October 2, 2008 and President of Private Equity & Global Operations from October 2, 2008 to January 2009. He managed Bank of America Corporation's third-party, nonproprietary and open architecture investment product platforms. Mr. Moynihan joined Bank of America in 2004. He served as an Executive Vice President of Wealth Management and Brokerage at FleetBoston Financial Corporation from 2000 to April 2004. Mr. Moynihan served as the Managing Director of Corporate Strategy and Development at FleetBoston Financial Corp. since 1994 and its Senior Vice President since 1998. He served as Fleet's eCatalyst from 2000 to 2001 and was responsible for driving the development and implementation of Fleet's Internet strategy. His responsibilities included oversight of all mergers & acquisitions, including the merger of Fleet Financial Group and BankBoston Corporation and Fleet's earlier acquisitions of Quick & Reilly, Columbia Management, Shawmut National Corporation, NatWest Bank's US Operations, Sanwa Business Credit and others. Mr. Moynihan joined Fleet Financial Group in April 1993 as the Deputy General Counsel. He serves as the Chairman and a Director of Boy's And Girl's Clubs of Boston Inc. He served as the Chairman of the Crossroads Rhode Island and Providence Haitian Project Inc. He served as the Chairman of the Board and Director at Merrill Lynch & Co., Inc. Mr. Moynihan serves as a Director of Bank of America N.A., United Way of Mass Bay (also known as United Way of Massachusetts Bay Inc.), YouthBuild Boston Inc., and FIA Card Services, N.A. In 2010, Mr. Moynihan was elected as a Trustee of the Corporation of Brown University. He served as a Director of BlackRock Inc. since February 2009. Mr. Moynihan has been chairing Bank of America's Global Diversity and Inclusion Council since 2007 and is an Executive Champion of its Disabilities Affinity Group for Bank of America associates. He holds BA from Brown University in 1981 and JD from University of Notre Dame Law School in 1984. Mr. Moynihan has a B.Ph. and an M.A. from Miami University.

CEO Compensation
  • Brian's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Brian's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Bank of America management team in years:

4.7
Average Tenure
59
Average Age
  • The tenure for the Bank of America management team is about average.
Management Team

Brian Moynihan

TITLE
Chairman & CEO
COMPENSATION
$23M
AGE
60
TENURE
9.8 yrs

Paul Donofrio

TITLE
Chief Financial Officer
COMPENSATION
$12M
AGE
59
TENURE
4.3 yrs

Tom Montag

TITLE
COO & President of Global Banking and Markets
COMPENSATION
$19M
AGE
62
TENURE
8.2 yrs

Thong Nguyen

TITLE
Vice Chairman
COMPENSATION
$10M
AGE
60
TENURE
14 yrs

Dean Athanasia

TITLE
President of Consumer & Small Business
COMPENSATION
$10M
AGE
52
TENURE
1.8 yrs

Geoffrey Greener

TITLE
Chief Risk Officer
COMPENSATION
$12M
AGE
54
TENURE
5.6 yrs

Cathy Bessant

TITLE
Chief Operations & Technology Officer
AGE
59

Rudolf Bless

TITLE
Chief Accounting Officer
TENURE
4.7 yrs

Andrea Smith

TITLE
Chief Administrative Officer
AGE
51
TENURE
4.3 yrs

Lee McEntire

TITLE
Senior Vice President of Investor Relations
TENURE
3.8 yrs
Board of Directors Tenure

Average tenure and age of the Bank of America board of directors in years:

7.3
Average Tenure
70
Average Age
  • The tenure for the Bank of America board of directors is about average.
Board of Directors

Brian Moynihan

TITLE
Chairman & CEO
COMPENSATION
$23M
AGE
60
TENURE
5.1 yrs

Tom May

TITLE
Independent Director
COMPENSATION
$380K
AGE
72
TENURE
15.6 yrs

Frank Bramble

TITLE
Independent Director
COMPENSATION
$390K
AGE
71
TENURE
13.8 yrs

Monica Lozano

TITLE
Independent Director
COMPENSATION
$380K
AGE
62
TENURE
13.6 yrs

Sharon Allen

TITLE
Independent Director
COMPENSATION
$390K
AGE
67
TENURE
7.3 yrs

Jack Bovender

TITLE
Lead Independent Director
COMPENSATION
$500K
AGE
74
TENURE
5.1 yrs

Susan Bies

TITLE
Independent Director
COMPENSATION
$484K
AGE
72
TENURE
10.4 yrs

Linda Hudson

TITLE
Independent Director
COMPENSATION
$350K
AGE
69
TENURE
7.3 yrs

R. Yost

TITLE
Independent Director
COMPENSATION
$355K
AGE
71
TENURE
7.3 yrs

Arnold Donald

TITLE
Independent Director
COMPENSATION
$350K
AGE
64
TENURE
6.8 yrs
Who owns this company?
Recent Insider Trading
  • Bank of America individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
25. Oct 19 Sell Frank Bramble Individual 23. Oct 19 23. Oct 19 -6,500 $31.33 $-203,645
18. Oct 19 Sell Kathleen Knox Individual 17. Oct 19 17. Oct 19 -40,000 $30.23 $-1,209,200
19. Apr 19 Sell Dean Athanasia Individual 17. Apr 19 17. Apr 19 -129,615 $29.78 $-3,860,324
X
Management checks
We assess Bank of America's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Bank of America has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BAC News

Simply Wall St News

There's A Lot To Like About Bank of America Corporation's (NYSE:BAC) Upcoming 0.7% Dividend

Bank of America's next dividend payment will be US$0.18 per share, on the back of last year when the company paid a total of US$0.72 to shareholders. … See our latest analysis for Bank of America Dividends are typically paid from company earnings. … Bank of America is a rare case where dividends have been decreasing at the same time as earnings per share have been improving.

Simply Wall St -

What Kind Of Investor Owns Most Of Bank of America Corporation (NYSE:BAC)?

A look at the shareholders of Bank of America Corporation (NYSE:BAC) can tell us which group is most powerful. … Check out our latest analysis for Bank of America NYSE:BAC Ownership Summary, July 3rd 2019 What Does The Institutional Ownership Tell Us About Bank of America? … Insider Ownership Of Bank of America While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

You Have To Love Bank of America Corporation's (NYSE:BAC) Dividend

Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. … Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. It's good to see Bank of America has been growing its earnings per share at 26% a year over the past 5 years. The company is only paying out a fraction of its earnings as dividends, and in the past been able to use the retained earnings to grow its profits rapidly - an ideal combination. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … We like that it has been delivering solid improvement in its earnings per share, and relatively consistent dividend payments.

Simply Wall St -

I Ran A Stock Scan For Earnings Growth And Bank of America (NYSE:BAC) Passed With Ease

View our latest analysis for Bank of America How Quickly Is Bank of America Increasing Earnings Per Share? … We would not expect to see insiders owning a large percentage of a US$269b company like Bank of America. … You can't deny that Bank of America has grown its earnings per share at a very impressive rate.

Simply Wall St -

At US$28.27, Is It Time To Put Bank of America Corporation (NYSE:BAC) On Your Watch List?

Let’s take a look at Bank of America’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … This is because Bank of America’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

Is Bank of America Corporation's (NYSE:BAC) CEO Overpaid Relative To Its Peers?

According to our data, Bank of America Corporation has a market capitalization of US$269b, and pays its CEO total annual compensation worth US$23m. … Thus we can conclude that Brian Moynihan receives more in total compensation than the median of a group of large companies in the same market as Bank of America Corporation. … I think that the total shareholder return of 112%, over three years, would leave most Bank of America Corporation shareholders smiling.

Simply Wall St -

What Should You Know About The Future Of Bank of America Corporation's (NYSE:BAC)?

In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Bank of America in the longer term. … See our latest analysis for Bank of America How will Bank of America perform in the near future? … NYSE:BAC Past and Future Earnings, June 21st 2019 This results in an annual growth rate of 1.7% based on the most recent earnings level of US$27b to the final forecast of US$28b by 2022.

Simply Wall St -

Do You Like Bank of America Corporation (NYSE:BAC) At This P/E Ratio?

Bank of America has a price to earnings ratio of 10.3, based on the last twelve months. … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Bank of America: P/E of 10.3 = $28.04 ÷ $2.72 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … NYSE:BAC Price Estimation Relative to Market, June 17th 2019 Its relatively low P/E ratio indicates that Bank of America shareholders think it will struggle to do as well as other companies in its industry classification.

Simply Wall St -

Did Bank of America Corporation (NYSE:BAC) Insiders Sell Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Bank of America Corporation (NYSE:BAC). … Check out our latest analysis for Bank of America The Last 12 Months Of Insider Transactions At Bank of America In the last twelve months, the biggest single sale by an insider was when the President of Consumer & Small Business, Dean Athanasia, sold US$3.9m worth of shares at a price of US$29.78 per share. … Bank of America Insiders Are Selling The Stock The last three months saw significant insider selling at Bank of America.

Simply Wall St -

Did Bank of America Corporation (NYSE:BAC) Create Value For Investors Over The Past Year?

Bank of America Corporation (NYSE:BAC) delivered an ROE of 7.44% over the past 12 months, which is relatively in-line with its industry average of 8.45% during the same period. … But what is more interesting is whether BAC can sustain or improve on this level of return. … Metrics such as financial leverage can impact the level of ROE which in turn can affect the sustainability of BAC's returns

Simply Wall St -

BAC Company Info

Description

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets segments. The Consumer Banking segment offers traditional and money market savings accounts, CDs and IRAs, noninterest- and interest-bearing checking accounts, and investment accounts and products; and credit and debit cards, residential mortgages, and home equity loans, as well as direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. As of July 22, 2019, this segment served 66 million consumer and small business clients with approximately 4,300 retail financial centers; 16,600 ATMs; and digital banking. The GWIM segment offers investment management, brokerage, banking, and trust and retirement products; and wealth management solutions targeted to high net worth and ultra high net worth clients, as well as customized solutions to meet clients’ wealth structuring, investment management, and trust and banking needs, including specialty asset management services. The Global Banking segment provides lending products and services, including commercial loans, leases, commitment facilities, trade finance, and real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, and short-term investing options; working capital management solutions; and debt and equity underwriting and distribution, and merger-related and other advisory services. The Global Markets segment offers market-making, financing, securities clearing, settlement, and custody services, as well as risk management, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1874 and is headquartered in Charlotte, North Carolina.

Details
Name: Bank of America Corporation
BAC
Exchange: NYSE
Founded: 1874
$294,050,060,938
8,995,107,401
Website: http://www.bankofamerica.com
Address: Bank of America Corporation
Bank of America Corporate Center,
100 North Tryon Street,
Charlotte,
North Carolina, 28255,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE BAC Common Stock New York Stock Exchange US USD 02. Jan 1969
DB NCB Common Stock Deutsche Boerse AG DE EUR 02. Jan 1969
XTRA NCB Common Stock XETRA Trading Platform DE EUR 02. Jan 1969
LSE 0Q16 Common Stock London Stock Exchange GB USD 02. Jan 1969
SWX BAC Common Stock SIX Swiss Exchange CH CHF 02. Jan 1969
WBAG BOAC Common Stock Wiener Boerse AG AT EUR 02. Jan 1969
SNSE BAC Common Stock Santiago Stock Exchange CL USD 02. Jan 1969
BVC BAC Common Stock Bolsa de Valores de Colombia CO COP 02. Jan 1969
KAS US_BAC_ Common Stock Kazakhstan Stock Exchange KZ KZT 02. Jan 1969
BMV BAC * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1969
BVL BAC Common Stock Bolsa de Valores de Lima PE USD 02. Jan 1969
NYSE BAC.PRE PFD PER1/1000E New York Stock Exchange US USD 31. Oct 2006
NYSE BAC.PRA DEP SHS PFD EE New York Stock Exchange US USD 20. Apr 2016
NYSE BAC.PRM 5.375 DEP PFD KK New York Stock Exchange US USD 18. Jun 2019
NYSE BAC.PRB 6 NCUM PFD SR GG New York Stock Exchange US USD 07. May 2018
NYSE BAC.PRC PFD CUM SER C New York Stock Exchange US USD 25. Jan 2016
NYSE BAC.PRY DEP 1/1000 PFD New York Stock Exchange US USD 23. Jan 2015
NYSE BML.PRG PFD1/1200 SR1 New York Stock Exchange US USD 27. Oct 2004
NYSE BML.PRH PFD 1/1200SER2 New York Stock Exchange US USD 08. Mar 2005
NYSE BML.PRJ PFD DP1/1200 4 New York Stock Exchange US USD 14. Nov 2005
NYSE BML.PRL PFD 1/1200SER5 New York Stock Exchange US USD 26. Mar 2007
NYSE BAC.PRL 7.25%CNV PFD L New York Stock Exchange US USD 31. Jan 2008
NYSE BAC.PRJC DP1/1000 7.25% J New York Stock Exchange US USD 16. Nov 2007
NYSE BAC.PRK 5.875 NCM PFD HH New York Stock Exchange US USD 18. Jul 2018
OTCPK NCB2 -U 5.2% Pink Sheets LLC US USD 23. May 2013
BOVESPA BOAC34 BDR REPR 1 COM STK Bolsa de Valores de Sao Paulo BR BRL 03. Jan 2012
BASE BA.C CEDEAR EACH REP 1/2 COM(USD) Buenos Aires Stock Exchange AR ARS 29. Aug 2007
NYSE BML.PRJ PFD DP1/1200 4 New York Stock Exchange US USD 14. Nov 2005
NYSE BAC.PRN 5% DEP RP PFD LL New York Stock Exchange US USD 11. Sep 2019
DB NCB2 -U 5.2% Deutsche Boerse AG DE USD 23. May 2013
Number of employees
Current staff
Staff numbers
209,000
Bank of America employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/21 23:33
End of day share price update: 2019/11/21 00:00
Last estimates confirmation: 2019/11/21
Last earnings filing: 2019/10/28
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.