Investors need 962 Bank of America shares for $1,000

Bank of America is a major financial services company. It offers services like traditional banking, investment banking, and investments. After facing challenges during the Great Recession, the bank has stabilized and continues to grow. Currently, Bank of America pays a quarterly dividend of $0.26 per share. In the past, during the 2008 financial crisis, the bank cut its dividend significantly. Now, it must show regulators it has enough capital to support its dividend payments. The bank's payout ratio is 35%, meaning it pays out 35% of its profits as dividends. This ratio suggests that the current dividend is likely safe. If you want to receive $1,000 a year in dividends from Bank of America, you would need to own 962 shares. This calculation is based on the current annual dividend payout of $1.04 per share. The stock price is around $42, so buying 962 shares would cost about $40,400. The stock has a dividend yield of 2.5%, which is higher than the average yield of the S&P 500 index. This makes it an appealing option for investors looking for dividend income.