Today, Bank of America’s shares will likely rally on the announcement of another $20-billion bailout package from Washington.
However, in connection with the aid, (BAC: 7.85 -0.12 -1.51%) said it would further limit executive compensation and slash its dividend to nearly nothing.
This marks the second dividend cut in a row, and is a huge departure from the firm’s decades-long streak of steadily RISING payments.
I will have a complete update on Bank of America in the next issue of Dividend Superstars.
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