Summary
Stock markets have traded under significant pressure in recent weeks.
But the financial sector is currently setting a positive tone for the broader economy.
Bank of America’s Q3 performances suggest strength in operational efficiency and managerial approach.
Income investors can capture the stock’s attractive 2.16% dividend yield while market bearishness continues to influence broader valuations.
Bank of America has a payout ratio of only 23.6% which suggests the dividend is stable and likely to see continued increases in the quarters ahead.
Over the last few weeks, stock markets have traded under significant pressure and it seems that no individual sector is being spared from the wrath of the bears. But some of these trends may change now that earnings season is here to promote clarity and provide data for informed investors. The financial sector has already provided portions of that clarity, and recent results from Bank of America (BAC) suggest strength and stability in the underlying economy. Negative momentum in the broader market, however, has kept the pressure on share prices. The good news is that BAC has fallen back into important support levels, which can be used as a basis point to establish new buy positions in the stock. Bank of America’s 2.15% dividend yield is looking highly attractive at current levels, and it would be difficult to imagine a scenario where the stock is not moving higher before the end of the year.
