A Key Catalyst for Bank of America

The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics around the investing world.

Bank of America shares have been on a good run (up more than 60% YTD), but Anand thinks there's a big catalyst that will drive shares higher. That catalyst is an eventual dividend raise. Competitors including JPMorgan Chase and Wells Fargo have already gotten Federal Reserve clearance to raise their non-trivial dividends, but Bank of America (and Citigroup) hasn't. Once that penny-per-quarter dividend is increased (which could be a while, but probably sooner than investors think), Bank of America's shares should rise.

The financial heavies are getting a lot of press these days, and much of it is negative. But there's one small bank that's flying under the radar, and it has some of the best operational numbers you'll ever see. The Motley Fool featured it in its brand-new free report: "The Stocks Only the Smartest Investors Are Buying." We invite you to download a free copy. To find out the name of the bank Warren Buffett would probably be interested in if he could still invest in small banks, just click here.

Anand Chokkavelu owns shares of Bank of America, JPMorgan Chase, Citigroup, and Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo and has created a covered strangle position in Wells Fargo. Motley Fool newsletter services recommend Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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