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Bank of America Tags $17 Billion for Shareholders in Next 4 Quarters

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Aug. 18 2017, Updated 9:39 a.m. ET

Dividends

Among the major US banks (IYF), JPMorgan Chase (JPM) returned $4.5 billion to shareholders in 2Q17 for a payout ratio of 64%. The bank paid out dividends of $0.50 with an annualized dividend yield of 2.15%.

In comparison, Bank of America (BAC) paid a dividend of $0.075, translated into a lower yield of ~1.3%. The banking is planning to return $17.0 billion over the next four quarters, with a 60% increase in quarterly dividends.

Wells Fargo (WFC) returned $3.4 billion in 2Q17 with a payout ratio of 63%. The bank expects to enhance its 3Q17 dividends to $0.39 from the current payout of $0.38, subject to board approval.

Wells Fargo (WFC) returned $3.4 billion in 2Q17 with a payout ratio of 63%. The bank expects to enhance its 3Q17 dividends to $0.39 from the current payout of $0.38. Its dividends translate into a yield of 2.95%.

Citigroup (C) returned ~$2.2 billion to its shareholders during the same period. The bank paid dividends of $0.16 per share, translating into an annualized dividend yield of 1.12%. Citigroup’s payout ratio rose to 63% in 2Q17, compared with 40% in 2Q16.

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Repurchases firm

With respect to repurchases, JPMorgan Chase bought back 35 million shares at an average share price of $86.05 in 2Q17. The bank is expected to pay out ~$18 billion–$22 billion to shareholders in the current year, forming ~6% of its total capitalization. Bank of America (BAC) also engaged in repurchases of $2.0 billion in 2Q17.

Wells Fargo has approved $11.5 billion in stock repurchases during the next one-year period. The decision reflects the bank’s plan to buy back shares when prices are expected to be weaker. The bank repurchased its common stock totaling $1.5 billion in 2Q17. Citigroup repurchased ~29 million shares during the same period for a total value of ~$1.8 billion.

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