Bank of America Increases Quarterly Dividend 25%
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CHARLOTTE, N.C., June 25 /PRNewswire/ -- Responding to recently reduced federal taxes on dividends, the Bank of America Corporation Board of Directors today increased the quarterly dividend on common stock by 16 cents per share, or 25 percent, to $.80.
The dividend is payable on September 26, 2003 to shareholders of record on September 5, 2003.
"The reduced tax rate on dividends makes it as efficient for us to return capital to shareholders directly through dividends as through stock buybacks," said Ken Lewis, Bank of America chairman and chief executive officer. "By paying a higher dividend, we give shareholders more flexibility in deciding whether to use their share of our profits for spending or reinvestment. The dividend increase is also an indication of our confidence in the future of the U.S. economy and in our company's financial progress," Lewis added.
Bank of America (NYSE: BAC) has consistently rewarded shareholders with annual dividend increases. Previous to today's action, the dividend had increased at an average annual rate of 12 percent over the past 25 years.
One of the world's leading financial services companies, Bank of America is committed to making banking work for customers and clients like it never has before. Through innovative technologies and the ingenuity of its people, Bank of America provides individuals, small businesses and commercial, corporate and institutional clients across the United States and around the world new and better ways to manage their financial lives.
Shares of Bank of America (NYSE: BAC), the second largest banking company in the United States by market capitalization, are listed on the New York, Pacific and London stock exchanges. The company's Web site is www.bankofamerica.com. News, speeches and other corporate information may be found at www.bankofamerica.com/newsroom.
This press release contains forward-looking statements, including statements about the capital position and dividends of Bank of America Corporation. The forward-looking statements involve certain risks and uncertainties, including, among others, the following: 1) general economic conditions are less favorable than expected; 2) changes in the interest rate environment reduce interest margins and impact funding sources; 3) changes in market rates and prices may adversely impact the value of financial products; and 4) legislation or regulatory environments, requirements or changes adversely affect the businesses in which the company is engaged. For further information regarding Bank of America Corporation, please read the Bank of America reports filed with the SEC and available at www.sec.gov.
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