The dividend yield of close to 3% at the market price of around $24 on July 28 is another reason for value investors to consider investing in Bank of America shares.
In summary, the investment thesis for Bank of America is based on a few pillars, including the recent underperformance relative to the broad market, the expected recovery of the American economy and the potential release of loan loss provisions.
Even if the bank gets everything right and reports stellar growth as expected, shares might still lag the market considering the higher growth expected from many other business sectors such as pharmaceutical and information technology.
