The new payout, amounting to $1.28 on an annualized basis, reflects an annual yield of approximately 2.09% based on Thursday’s closing price of $61.28. This marks a notable uptick from the previous 1.83% yield. The bank confirmed the distribution is scheduled for September 25 to shareholders of record as of September 4.

Bank of America joined a cohort of major financial institutions that cleared the Federal Reserve’s annual stress tests this year. Following the regulatory green light, several peers have similarly signaled plans to return capital to investors through increased dividends and aggressive stock buyback programs.