Bank of America: Buy Now For Increased Dividends

Summary:

• Financial sector thrives in 2024, boosted by a solid economy, lower inflation, and gradual rate cuts, with Bank of America poised to challenge its all-time high.
• Trump’s election victory and potential deregulation are expected to drive further gains for banks, echoing the post-2016 election rally.
• Bank of America could see significant dividend increases in 2025, potentially reaching $0.30 per share, driven by earnings growth and relaxed capital requirements.
• I recommend buying BAC now, anticipating continued sector strength and dividend hikes under favorable economic and political conditions in 2025.

The financial sector (XLF) has performed well in 2024, and even better in Q4 following the US election. Bank of America (NYSE:BAC) has kept pace and looks set to challenge its all-time high of $55 next year. This

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BAC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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