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Repurchases Expected to Rise for BAC in 2018

Robert Karr
Repurchases Expected to Rise for BAC in 2018

Bank of America (BAC) raised its dividend to $0.12 in 3Q17 following its passing of stress tests in 2017. Banks (XLF) have benefited from lower taxes resulting in better capital adequacy and higher allocation toward shareholder payouts. However, a major portion of these payouts are expected to be allocated toward repurchases in 2018. Major banks such as Citigroup (C), JPMorgan Chase (JPM), and Goldman Sachs (GS) have enhanced their repurchase programs amid record profits due to lower taxes.