Bank of America Corp’s Stock Shows Signs of Opportunity for Investors

The DividendRank formula used by Dividend Channel evaluates thousands of dividend stocks, applying a proprietary method to find those with strong fundamentals coupled with an affordable valuation. Bank of America Corp (Symbol: BAC) currently ranks in the top 25% of this universe, indicating that it stands out as a compelling investment opportunity worth further examination by investors.

Adding to Bank of America’s appeal is its recent trading activity. On Thursday, BAC shares dipped into oversold territory, reaching as low as $37.32 per share. This condition is identified with the Relative Strength Index (RSI), a technical analysis tool that measures momentum on a scale from zero to 100. When the RSI falls below 30, a stock is generally considered oversold.

For Bank of America Corp, the RSI has tracked down to 25.9, notably lower than the average RSI of 39.3 for the broader array of dividend stocks surveyed by Dividend Channel. A declining stock price, ceteris paribus, can offer dividend investors improved yields. At its recent price of $41.85, BAC’s annualized dividend is $1.04 per share, translating to a yield of 2.49%.

From a bullish perspective, the current RSI of 25.9 for BAC may signal that the intense selling pressure is nearing its end, presenting potential entry points for investors looking to buy. Evaluating Bank of America’s dividend history remains crucial for those bullish on the stock.

While dividends can be unpredictable at times, examining the following historical chart can provide insight into the likelihood that recent dividend payments will continue.

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Also see:

• Semiconductors Dividend Stocks
• AMSC YTD Return
• IMH Historical Stock Prices

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.