Monday, March 7, 2011

Bank of America Dividend: One Analyst’s View and "BofA Investor Meetings Have a Dark Market History" (BAC)

Regular visitors may have noticed a paucity of individual equity rec's. The reason? I'm clueless.
Despite a lifetime spent at the market I'm feeling slightly adrift. What to do? Bring in the pros, here's a MarketBeat twofer:
Our colleague Shira Ovide spotlighted the fact that Bank of America is going to be holding its first investor’s day meeting since 2007 on Tuesday. A big area of investor interest is likely going to be any mention of when/if BofA might restart its dividend, which was cut drastically during the financial crisis. Credit Suisse bank analyst Moshe Orenbuch had this to say in a note published on Friday:
We would expect an update regarding capital deployment. Management believes that they will have the ability to pay dividends and engage in share buyback over time as approved by regulators. Management expects to be positioned to modestly increase the dividend in the second half of 2011 and this request was included in the Capital Plan that was submitted to the Fed. In addition, management may make comments around its inclination to repurchase shares....MORE

As Matt noted earlier, lots of anticipation ahead of the Bank of America investor day tomorrow. The BofA bulls are hoping for positive news on the big bank’s dividend, which yields a scant 0.3% after being eviscerated during the financial crisis.

But market worrywarts have something else in mind. David Benoit, our colleague at Dow Jones, espies a Barclays research note that associates BofA investor meetings with market darkness. “There’s been some rough history going on during BofA’s only other two investor days this century,” David writes....MORE