Bank of America’s (BAC) Strong Buy Status Driven by Capital Strength and Payout Growth

Bank of America Corporation (NYSE:BAC) is included among the Best Strong Buy Dividend Stocks to Invest in Now.

Bank of America’s (BAC) Strong Buy Status Driven by Capital Strength and Payout Growth

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Bank of America Corporation (NYSE:BAC) is an American multinational investment bank and financial services holding company. On July 23, the company declared a 7.7% hike in its quarterly dividend to $0.28 per share. Through this increase, the company stretched its dividend growth streak to 11 years, which makes it one of the best Strong Buy dividend stocks. The stock has a dividend yield of 2.34%, as of July 29.

Bank of America Corporation (NYSE:BAC) reported strong earnings in the second quarter of 2025. The company reported revenue of $26.46 billion, which showed a 4.2% growth from the same period last year. Book value per common share increased by 8% to reach $37.13, while tangible book value per common share rose by 9% to $27.71. The company set aside $1.6 billion for credit losses, up slightly from $1.5 billion in both the second quarter of 2024 and the first quarter of 2025. Net charge-offs remained steady at $1.5 billion compared to those same periods. The Common Equity Tier 1 (CET1) capital ratio under the standardized approach stood at 11.5%, comfortably exceeding the regulatory minimum.

While we acknowledge the potential of BAC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BAC and that has 100x upside potential, check out our report about this cheapest AI stock.

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