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Bank of America Increases Shareholder Value

In a significant move to enhance shareholder returns, Bank of America Corporation has announced a new quarterly cash dividend for its common stock, raising it by 8% to $0.28 per share. This decision, made by the Board of Directors, marks an increase of $0.02 from the previous quarter, reaffirming the bank's commitment to delivering value to its shareholders. The enhanced dividend will be payable on September 26, 2025, to all shareholders of record by September 5, 2025.

Alongside this dividend increase, Bank of America also approved a substantial $40 billion common stock repurchase program, set to take effect on August 1, 2025. This new repurchase plan will replace the existing program, which is set to expire on the same date, and comes as a proactive approach to continue providing additional capital return flexibility. At the end of June 2025, the previous program still had roughly $9.1 billion available for stock repurchases, showcasing Bank of America’s ongoing strategy of rewarding investors with excess capital that is not utilized for economic growth and future investments.

This dual announcement not only highlights Bank of America's robust financial position but also reflects the bank's strategic focus on maintaining strength and stability through economic cycles. The willingness to return capital to shareholders demonstrates a balance between rewarding investors and investing in core operations to meet customer needs and support community growth.

The bank underscores that its capacity for such capital distributions is closely linked to maintaining regulatory capital levels above the mandated minimums. This strategy is designed to assure investors of the bank's fiscal health and operational viability in various market conditions. However, the actual execution of stock repurchases will depend on various factors, including the company's capital position, financial performance, liquidity, and overall market trends.

In addition to the common stock dividend, Bank of America also declared a quarterly cash dividend of $1.75 on its 7% Cumulative Redeemable Preferred Stock, Series B. This dividend will be payable on October 24, 2025, for shareholders recorded by October 10, 2025.

The recent announcements coincide with the bank's commitment to transparency and ongoing engagement with investors, keeping them informed about its strategic initiatives and financial outlook. Bank of America remains a cornerstone of the financial services industry, known for its wide range of offerings to individual consumers, small businesses, and corporate entities alike.

As one of the world's leading financial institutions, Bank of America serves approximately 69 million customers with extensive banking, investment, and risk management services. These services are further enhanced through robust digital capabilities and a physical presence through numerous retail financial centers across the United States and beyond. The bank continues to prioritize innovation to meet customer expectations, thereby enhancing overall satisfaction and loyalty.

In summary, Bank of America's increase in dividend and the initiation of a significant stock repurchase program signify not only its firm financial standing but also a steadfast commitment to returning value to its shareholders. As the company's financial performance evolves, both current and potential investors are encouraged to stay tuned for further updates and insights that may emerge from these strategic efforts.