Sorry for you longs, but BAC simply can't afford to keep that dividend. The bigger question is will they guide down in a few weeks?That will be a double whammy, could even drop to $16.00 on that.
I would think more like $12 for the bottom actually
why not $10 or $8 ?
I bought some of the 17.50 Nov Puts today to hedge my long shares---other longs might want to buy some puts also...it looks like its going to be a long summer...
I think, long term it will help you to sleep better and it is worth it.
It is actually likely to happen. I take $15 as real possibility by end of Oct.
Also, if you remember, BAC did provide guidance that was somewhat positive at the last couple of conferences and interviews of the past month or so.
Why can't they afford to keep paying the dividend?