Value Investing News

Yesterday a bearish report from Citi Investment Research analyst Keith Horowitz sent Bank of America shares 12% lower. The analyst announced that he was expecting further deterioration in Bank of America’s earnings, by cutting his projection for 2009 EPS to just $0.25/share. Given this information, the current quarterly dividend of $0.32/share might not be sustainable.

The analyst expects that Bank of America might have to cut its dividend again, which could happen as early as January 20, when the company reports its latest quarterly results.

• http://www.dividendgrowthinvestor.com/2009/01/bank-of-america-bac-might-have-to-cut.html (1)