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.

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