Image Source
Shares of Bank of America (NYSE:BAC) have taken a tumble recently, and the added volatility has injected feelings of uncertainty for dividend investors. In most cases, dividend portfolio strategies are based on a relatively conservative outlook that does not jibe well with volatility. These are the cases where it pays to take an objective step back and view things from a longer-term perspective. When we last outlined our view on the stock, our recommendation to buy BAC on a drop into the $29 handle was almost entirely dismissed as “impossible.” Well, here we are - right at our suggested inflection point. The good news is that we maintain our original stance and see this as a buying opportunity. New positions should be structured in ways that allow for some room to the downside, as we are currently watching for a few scenarios that could potentially derail markets during the second half of this year. That said, we are long BAC and will add to the position if markets drop further over the next few months.
