Schaeffer's Top Stock Picks for '25

Bank Stock Could Bring Early Presents For Dividend Investors

BAC has chart support working against the stock

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Last Monday, we profiled Bank of America Corp (NYSE:BAC) and the earnings beat that helped the stock gap higher by 6.1%. Last Wednesday, Oct 19, the company declared a quarterly cash dividend of $0.22 per share, payable on December 30 to shareholders of record as of December 2. With this, the company offers a forward dividend of $0.88 at a dividend yield of 2.59%.

Moreover, Bank of America is expected to end fiscal 2022 with a 10.9% decline in earnings for fiscal 2022. However, it is estimated to report a 6.2% increase in revenue for fiscal 2022. In addition, estimates predict 9.3% revenue growth and 16.7% earnings growth for fiscal 2023. Furthermore, Bank of America holds $853.52 billion in cash and $556.38 billion in total debt on its balance sheet, potentially setting the stock up for a recovery in the coming year.

Last week was BAC's best weekly win since Jan. 7. Even after last week's fireworks, the shares are down 22% in 2022, with their descending 160-day moving average still looming above. This trendline hasn't been toppled on a closing basis since Feb. 24.

BAC Stock Chart

 
 

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