Bank of America Corporation (BAC)
Bank of America is a massive American financial institution that provides banking, investing, and asset management services to millions of people and businesses.
Is Bank of America Corporation a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: Strong market position as one of the largest banks in the US. Worth weighing: Highly sensitive to changes in government interest rate policy.
Is this normal for this company?
Each figure against the range this same company has produced recently. Neither end of a range is the good end.
Share price divided by the earnings actually reported over the four most recent quarters. The range is the same calculation at each of this company's last few results, so roughly the past year.
Profit as a share of sales, from the company's own quarterly statements. The range covers the 5 quarters we hold, and the figure shown is its most recent one.
How these ranges are built
Every number here is the company's own reported figure, not a comparison with other companies. The ranges come from this company's own results and its share price. Where it reports in a different currency from the one its shares trade in, the price-to-earnings range is left out rather than mixing the two.
What does Bank of America Corporation do?
Think of Bank of America as a financial engine room, helping people save, borrow, and manage their money while providing complex services to large corporations. They make money primarily by collecting interest on loans and charging fees for their various financial services. The one thing to keep an eye on is how the wider economy performs, as their success is closely tied to interest rates and the general health of the American consumer.
On our factor screen it looks strongest on momentum and value, and weakest on quality.
- ✓Pays a dividend - about 2.0% a year
- ✓Growing - revenue up about 17% over the year
- ✓Very profitable - turns about 30% of sales into profit
- Value screens high
- Momentum screens high
- —
Does Bank of America Corporation pay a dividend?
Yes - Bank of America Corporation currently pays a dividend of about 2.0% a year, which is £20 a year for every £1,000 invested (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it. An ISA doesn't shelter the US tax on this one →
What do the numbers say about Bank of America Corporation's dividend?
There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.
Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.
Most recent ex-dividend date: 5 Jun 2026. To receive a dividend you must already own the shares before the ex-dividend date; become a holder on or after it and the previous owner keeps that payment. Why the price usually falls that morning →
What do Bank of America Corporation's numbers mean?
How has it performed?
Growth of £1,000, the worst fall, and year by year
Over about 2 years to 2026-09-11. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has Bank of America Corporation actually fallen?
Over the last 2 years of daily prices, Bank of America Corporation fell as much as −28% from a high to a later low. Falls like this are normal when you own a share.
Past falls are not a forecast - it can fall further, or recover.
How has it done year by year?
Calendar-year total return - the share price with dividends reinvested - from adjusted closing prices. The current year is only part-complete. Past returns are not a guide to the future.
A closer look at the numbers
Ownership, earnings history, where the money goes, and the outlook range
Does the share price tell you if it's cheap or expensive?
Who owns Bank of America Corporation?
About 72% of Bank of America Corporation, or about 72 in every 100 shares, is held by big institutions such as pension and index funds, and company insiders hold about 7%. The rest, roughly 21%, is held by the public and smaller investors.
What this does and doesn't tell you
This is a recent snapshot of the share register, and it moves. We don't read anything into who owns what - a high institutional share is common for any large listed company and is not a signal about it.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
How much money does Bank of America Corporation make?
Revenue and profit by quarter, and how much of each sale turns into profit.
When does Bank of America Corporation report earnings, and how did recent quarters go?
Bank of America Corporation is next scheduled to report on about 2026-10-14 - dates can move, and we don't predict results; this just tells you when to look.
‘Beat’ and ‘missed’ are against what analysts expected, not whether the business is doing well.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-07-14 | $1.12 | $1.21 | Beat +8% |
| 2026-04-15 | $1.02 | $1.11 | Beat +9% |
| 2026-01-14 | $0.96 | $0.98 | Beat +2% |
| 2025-10-15 | $0.95 | $1.06 | Beat +11% |
| 2025-07-16 | $0.86 | $0.89 | Beat +4% |
| 2025-04-15 | $0.81 | $0.90 | Beat +11% |
Across the last 6 quarters here, Bank of America Corporation came in ahead of what analysts expected 6 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Where these figures come from
Each quarter a company reports its results against a consensus of analyst forecasts. The figures here are reported versus expected earnings per share from published results; the expectation is that analyst consensus, not our view. Report dates are estimates and can move.
What are the scenarios for Bank of America Corporation?
An illustrative range for the year ahead — not a prediction or a price target.
What are the pros, cons and common questions?
The case each way, and the questions people ask
Successful digital transformation drives efficiency and market share.
Long-term structural decline in traditional banking models.
What are the pros and cons of Bank of America Corporation?
A balance check, not a score or verdict.
- Strong market position as one of the largest banks in the US
- Healthy profit margins compared to many other sectors
- Consistent history of paying dividends to shareholders
- Highly sensitive to changes in government interest rate policy
- Large, complex organisations can be slow to adapt to new technology
- Heavily reliant on the health of the US economy
- Potential for increased loan defaults if the economy weakens
- Strict and changing financial regulations can impact profitability
- Competition from agile digital-only financial technology companies
The write-up's own warning lights — if these start happening, the case above changes.
- A significant and sustained drop in interest rates
- A major shift in how consumers choose to bank or borrow money
Common questions about Bank of America Corporation
Does Bank of America Corporation pay a dividend?
Yes - Bank of America Corporation currently pays a dividend of about 2.0% a year. Dividends are a share of profit paid to holders; the yield moves with the price and payouts can be cut.
When does Bank of America Corporation report earnings next?
Bank of America Corporation is next scheduled to report results on about 2026-10-14. Report dates are estimates and can move; this is a diary note for when to look, not a forecast of the outcome.
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Synchrony FinancialBuilt from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.