Here's Why You Shouldn't Expect a Big Dividend Increase From Bank of America in 2018

Here's Why You Shouldn't Expect a Big Dividend Increase From Bank of America in 2018

Bank of America (NYSE: BAC) gave its shareholders a massive dividend increase in 2017, increasing its quarterly payout from $0.30 to $0.48 per share -- a 60% raise. This brought the bank's dividend yield to nearly 2%, which is a respectable, but not especially high level relative to other bank stocks.

However, shareholders shouldn't count on a similar dividend increase next year, or anytime in the near future for that matter. It's not because the bank won't be able to afford another dividend increase -- it simply believes it can put its profits to work for shareholders in a better way.

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Source: Fool.com