The entire banking sector has endured the wrath of short sellers since April. Bank of America (NYSE: BAC), the worst performer among the major banks hit a low of $11.03 at the end of October. The stock is down substantially from it's 52-week high reached in April of $19.86. Is it time for BAC to make a come back?
With recent changes in Washington, rumors have been floating that banks could begin to raise their dividends once again. Bank of America currently pays a 1 cent dividend - the company used to boast a 64 cent payout. It may take time for the payout to reach that amount again, however the US banks are well capitalized and are earning profits. Bank of America could easily up its dividend exponentially. A 10 billion dollar goodwill write down scared investors into thinking that the bank reported a major loss. However the bank would have reported a large $3 billion profit if it weren't for the one time loss. Each quarter Bank of America gets financially stronger, yet the stock price continues to fall. The question is, when will investors notice?
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