Bank of America (BAC) is a Top Dividend Stock Right Now: Should You Buy?

Company Overview - Bank of America (BAC) is the second-largest bank in the United States, based in Charlotte, and operates in the Finance sector [3] - The stock has experienced a price change of -18.43% this year [3] Dividend Information - Bank of America currently pays a dividend of $0.26 per share, resulting in a dividend yield of 2.9%, which is higher than the Financial - Investment Bank industry's yield of 1.28% and the S&P 500's yield of 1.7% [3] - The annualized dividend of$ 1.04 has increased by 4% from the previous year, with an average annual increase of 8.84% over the last five years [4] - The company's payout ratio is 32%, indicating that it pays out 32% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Bank of America's earnings per share for 2025 is $3.64, reflecting a year-over-year earnings growth rate of 10.98% [5] Investment Perspective - Bank of America is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7] - The company is viewed as a solid dividend option, particularly in contrast to high-growth businesses or tech start-ups that typically do not offer dividends [7]