Bank of America’s 14% dividend hike boosts Berkshire Hathaway’s annual payout to $619 million from its BAC stake.
Warren Buffett’s Berkshire Hathaway will collect approximately $619 million annually from Bank of America dividends following a 14% increase in the quarterly payout. The new rate of $0.32 per share, up from $0.28, raises the forward annual dividend to $1.28 per share, payable on September 25 to shareholders of record as of September 4.
Bank of America’s board approved the dividend hike in July, citing strong earnings and franchise power. The move follows a trend of companies with growing payouts outperforming during market volatility, according to strategists. Berkshire holds 483,394,015 BAC shares, making it one of the largest dividend checks in corporate America.
The increase underscores the appeal of dividend stocks for long-term investors, despite their lower popularity compared to AI and growth stocks. Analysts advise balancing yield and growth prospects when selecting dividend investments.