BofA CEO raises dividend

Brian Moynihan Davos 2013 Pic

Bank of America shareholders have pressed Chief Executive Officer Brian Moynihan to raise their token penny-a-share payout for more than three years. He finally delivered.

Bloomberg reports that the bank’s quarterly dividend is rising to 5 cents after regulators approved the company’s capital plan, the lender said yesterday. Moynihan told investors in March 2011 that the firm could restore part of its payout, which was cut to 1 cent in 2009 to preserve capital during the financial crisis.

'Shareholders have had a pretty significant wait for a change in their performance', said Jonathan Finger, whose family-owned investment firm, Finger Interests, owns 900,000 Bank of America shares. 'The financial crisis and its impact on Bank of America in particular were probably deeper than most investors expected'.

The dividend increase, impossible without the Federal Reserve’s stamp of approval, is the latest sign that Moynihan, 54, is putting distance between the bank and the financial crisis that almost swallowed it. The firm yesterday also announced a pair of legal settlements of accusations stemming from that period, including a $9.5bn accord over claims tied to faulty mortgages.

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