How much of a Div increase do you think it would take to move BAC to $11 or $14 by end of year
Any divi will raise the share price. The yield will not force price appreciation. Wfc, usb, jpm range from 2.42-2.78 yield. At share price 8 annual divi = .40 = 5% yield, To align with sector SP = 16 yield 2.5 At .20 annual = share price 12 yield 2.5%So even .05-.10 per q could have an effect, if all yields were near equal.The real question is when will they raise divi????? It will have a serious psychological positive impact on bac's image. Rightly or wrongly bac will be viewed as healthier.
Thank you for the thoughtful analysis.